영문목차

Preface=xxi

Acknowledgments=xxv

1. Introduction to Business Acquisitions=1

A. What Business Activity Is Covered by M&A Law?=1

B. Two Different Stories―Two Different Deals=2

1. The Story of Pfizer Corporation's Acquisition of Pharmacia, Inc.=2

2. The Story of Nestlé's Acquisition of Chef America, Inc.=5

3. Wall Street M&A vs. Main Street M&A.=7

Questions=8

Notes=9

C. The Flow of a Deal : Introducing Timing, Pricing, and Other Structural Considerations=16

Deal Flow : How Did the Pfizer-Pharmacia Deal Get Done?=16

D. "Deal Flow" : Conceptualizing the Deal Process=18

1. The Start of Negotiations=19

2. The Role of Financial Advisors=19

3. Use of Non-Cash Consideration to Finance the Purchase Price=22

4. The Due Diligence Process=22

5. Board Approval of an Acquisition=23

6. Shareholder Approval of an Acquisition=24

7. Regulatory Approval of an Acquisition=24

8. Closing on the Acquisition Transaction=25

E. Business Incentives for M&A Transactions=26

Senate Judiciary Committee Hearings on Mergers and Corporate Consolidation in the New Economy=26

F. Historical Perspective and Current Status of M&A Activity=28

1. Historical Perspective on M&A Activity=28

Senate Judiciary Committee Hearings on Mergers and Corporate Consolidation in the New Economy=29

2. Current Status of M&A Activity=30

G. Treatment of Fundamental Changes Under Modern Corporation Codes=33

1. Historical Perspective=33

2. Modern Perspective=33

H. An Introduction to Relevant Public Policy Concerns=35

1. The Role of Modern Appraisal Rights=35

2. The Modern Importance of Fiduciary Duty Law=35

I. Overview of Different Methods for Structuring Business Acquisitions=40

1. Traditional Form : Direct Merger(Diagram 1)=41

2. Traditional Form : Asset Purchase for Cash(Diagram 4)=42

3. Traditional Form : Stock Purchase for Cash(Diagram 6)=43

Notes=45

2. Corporate Formalities : The Mechanics of Structuring Acquisition Transactions=49

A. An Introduction to Corporate Law Statutes : The Statutory Scheme of Delaware, Model Act, and California=49

1. The Requirement of Board and/or Shareholder Approval Under State Law=50

2. Federal Securities Laws and the Stock Exchange Rules=51

a. The Federal Proxy Rules=51

b. The Securities Act of 1933=52

c. Shareholder Approval Requirements of the NYSE=52

Notes=54

B. Corporate Formalities Required for Statutory Mergers Under Delaware Law and the MBCA=56

1. General Background―Delaware Law of Direct Mergers=56

2. Introduction to Dissenter's Right of Appraisal=58

3. Perfecting the Statutory Right of Appraisal=61

Problem Set No. 1 ―Statutory(or Direct)=62

Mergers Under Delaware Law and the MBCA=62

C. Corporate Formalities Required for Short Form Mergers―Under Delaware Law and the MBCA=65

Problem Set No. 2―Short Form Merger=66

D. Corporate Formalities Required for Asset Acquisitions―Under Delaware Law and the MBCA=66

1. General Background―Asset Acquisitions=66

Notes=69

Problem Set No. 3―Asset Acquisitions Under Delaware Law and the MBCA=76

2. What Qualifies as "Sale(or Transfer) of Substantially All the Assets"?=78

Gimbel v. The Signal Companies, Inc.=78

Questions=84

Katz v. Bregman=85

Questions=87

Hollinger Inc. v. Hollinger Intl., Inc.=87

Notes=99

E. Corporate Formalities Required for Stock Acquisitions=100

1. General Background=100

Problem Set No. 4―Stock Purchases Under Delaware Law and the MBCA=101

Notes=102

F. Corporate Formalities Required for Triangular Mergers Under Delaware Law and the MBCA=105

1. General Background on Triangular(Three-Party) Mergers=105

Problem Set No. 5―Forward and Reverse Triangular Mergers Under Delaware Law and the MBCA=107

2. A Recent MBCA Innovation : The Binding Share Exchange=112

Problem Set No. 6―MBCA §11.03 : The Binding(or Compulsory) Share Exchange=113

G. De Facto Merger Doctrine : Form vs. Substance Debate=114

1. What Is the De Facto Merger Doctrine?=114

Applestein v. United Board & Carton Corporation=114

Notes=120

Questions=122

2. De Facto Merger Doctrine Under Delaware Law=122

Hariton v. Arco Electronics, Inc.=124

Questions=126

Notes=126

3. The Modern Importance of Clear Default Rules=127

Pasternak v. Glazer=127

Questions=130

H. California Law=130

I. General Background―California's Approach=130

Corporate Combinations Under the New California General Corporation Law / Marshall L. Small=131

Problem Set No. 7―California Law=138

Questions=142

I. Is There a Right to Vote as a Class?=143

VantagePoint Venture Partners 1996 v. Examen, Inc.=143

Questions=151

J. Appraisal Rights=152

1. Introduction=152

The Purpose of the Shareholders' Appraisal Remedy / Barry Wertheimer=153

2. Procedural Requirements to Perfect Appraisal Rights=154

Motorola Mobility Holdings, Inc.=156

Questions=164

3. Determining Fair Value in an Appraisal Proceeding=165

Weinberger v. UOP, Inc.=166

Questions=179

Notes=180

4. Valuation Techniques and Fair Price=185

The Shareholders' Appraisal Remedy and How the Courts Determine Fair Value / Barry M. Wertheimer=185

Notes=188

The Impact of Modern Finance Theory in Acquisition Cases / Rutherford B. Campbell, Jr.=189

Note=193

Cavalier Oil Corp. v. Harnett=194

Questions=197

Notes=197

Cede & Co. v. Technicolor, Inc.=199

Questions=207

5. Appraisal Rights as Exclusive Remedy=208

Rabkin v. Philip A. Hunt Chemical Corp.=208

Questions=217

3. Scope of Successor Liability : Transferring the Assets(and Liabilities) of Target Co. to Bidder Co.=219

A. Successor Liability in Merger Transactions and Stock Purchases=220

1. Introductory Note=220

2. Commercial Leases=221

3. Intellectual Property Licensing Agreements=222

4. Tort Liability=222

5. Successor Liability in Direct(Statutory) Mergers vs. Triangular Mergers=223

PPG Industries, Inc. v. Guardian Industries Corporation=223

Notes=229

Questions=230

B. Use of Change of Control Clauses=230

Branmar Theatre Co. v. Branmar, Inc.=230

Questions=232

Problems=233

C. Successor Liability in Asset Acquisitions=233

1. Introductory Note=233

2. Dissolution of Target=234

3. Contract Creditors=236

American Paper Recycling Corp. v. IHC Corp.=236

Questions=241

4. Tort Creditors=242

Ruiz v. Blentech Corporation=242

Questions=247

Notes=247

4. Selected Federal Securities Law Provisions that Apply to Negotiated Business Combinations=251

A. Securities Act of 1933 : Issuance of Shares(or Other Securities) to Complete the Acquisition=252

1. Registered Transactions=253

2. Exempt Transactions=254

Questions=262

3. Rule 145 : Resales by Control Persons=262

B. Scope of Federal Proxy Rules=264

C. Rule 10b-5 and the Timing of Disclosure of Acquisition Negotiations=270

Basic Incorporated v. Levinson=270

Notes=276

NYSE Listed Company Manual=277

D. Insider Trading in Anticipation of Acquisitions=280

1. Liability Under Rule 14e-3=280

United States v. O'Hagan=280

Notes=285

2. Liability Under Section 16(b)=287

Texas International Airlines v. National Airlines, Inc.=287

Questions=291

5. Negotiating and Documenting the Transaction=293

A. Planning Problem : Negotiating and Documenting the Acquisition of a Privately Held Company=294

B. Negotiating the Transaction=295

1. Initial Negotiations and the Use of Letter of Intent=295

Turner Broadcasting System, Inc. v. McDavid=295

Questions=301

2. Use of Non-Disclosure/Confidentiality Agreements=302

Martin Marietta Materials, Inc. v. Vulcan Materials=303

Questions=317

C. Acquisition Consideration : Business Considerations and Legal Issues=318

1. Purchase Price : Cash vs. Stock as Acquisition Consideration=319

2. Different Mechanisms for Making Purchase Price Adjustments=319

a. Earn-Outs=319

Note=322

b. Escrows=323

c. Post-Closing Purchase Price Adjustments=324

Questions=324

3. Valuing Exchanges of Stock―Fixing the Exchange Ratio=325

In re RJR Nabisco, Inc. Shareholders Litigation=326

Notes=337

Questions=341

D. Negotiating and Drafting the Acquisition Agreement=341

1. The Basic Agreement=341

a. Preparation of the First Draft=342

b. Circulating First Draft for Comment=343

2. Representations and Warranties vs. Covenants vs. Conditions to Closing=344

a. Representations and Warranties=344

b. Covenants=346

c. Conditions to Closing=347

3. Closing : Post-Closing Covenants and Closing Documents=348

4. A Mock Negotiation Over the Terms of Target's Representations and Warranties=348

Note=359

5. Use of Materiality Qualifier―Herein of MACs and MAEs=360

In re IBP, Inc. Shareholders Litigation=360

Notes=383

Problem―Use Of Materiality Qualifiers=387

Planning Problem―Preparing the Stock Purchase Agreement for Galaxy's Acquisition of Trekker=387

Questions=387

Note=388

E. Indemnification Provisions and Their Relationship to Representations and Warranties=389

Questions=391

Notes=391

F. Due Diligence Procedures=393

6. Federal Regulation of Stock Purchases : Tender Offers and the Williams Act=399

A. Disclosure Requirements of §13(d) of the Williams Act=404

1. The Filing Obligations Under §13(d)=404

GAF Corporation v. Milstein=404

Questions=410

Notes=411

2. The Remedy for §13(d) Violations=416

Rondeau v. Mosinee Paper Corporation=416

Chromalloy American Corp. v. Sun Chemical Corp.=419

Questions=423

Notes=423

Schedule 13D : Embarcadero Technologies, Inc.=424

Schedule 13D : Motorola Inc.=425

B. Regulation of Third Party Tender Offers Under §14(d) of the Williams Act=426

1. What Is a "Tender Offer"?=426

SEC v. Carter Hawley Hale Stores, Inc.=426

Notes=433

Hanson Trust PLC v. SCM Corporation=435

Note=442

Questions=443

2. Scope of Disclosure Required Under Regulation 14D and Schedule TO=443

Annual Review of Federal Securities Regulation : Significant 1999 Legislative and Regulatory Developments=443

Questions=446

3. Rule 14d-10 : The Impact of the SEC's Best Price Rule=446

A Comeback for Tender Offers? / David Grinberg ; Gordon Bava=448

Question=451

4. Tender Offer Conditions : The Importance of Contract Law=451

Gilbert v. El Paso Company=451

Questions=455

C. State Antitakeover Statutes : State Regulation of Stock Purchases=455

1. The First Generation―Disclosure and Fairness Statutes=456

2. The Second Generation―Control Share and Fair Price Statutes=457

CTS Corp. v. Dynamics Corp. of America=457

Questions=468

3. The Third Generation―Business Combination Statutes=469

Amanda Acquisition Corp. v. Universal Foods Corp.=470

Questions=477

Notes=478

7. Fiduciary Duty Law : The Responsibilities of Boards of Directors, Senior Executive Officers, and Controlling Shareholders=481

A. Introduction to Scope of Fiduciary Duty Obligations=481

1. Business Judgment Rule : The Duty of Care and the Exercise of Informed Decision Making=481

Smith v. Van Gorkom=481

Questions=499

Notes=499

2. Traditional Perspective on Management's Use of Defensive Tactics to Thwart Unsolicited Offer from Bidder=511

Cheff v. Mathes=511

Questions=518

Notes=518

3. The Fiduciary Duty of Candor=520

B. The Application of the Williams Act to Defensive Tactics Implemented by a Target=521

Schreiber v. Burlington Northern, Inc.=521

Note=525

C. The Dawn of a New Era of Enhanced Scrutiny=526

Unocal Corporation v. Mesa Petroleum Co.=529

Questions=538

Notes=538

D. The "Poison Pill" : Addressing the Risk of Selling Target Co. "Too Cheaply"=541

1. Delaware Supreme Court Establishes the Validity of the Poison Pill=542

Moran v. Household International, Inc.=542

Questions=551

Notes=552

2. The Continuing Evolution of Delaware's Standard of "Enhanced Scrutiny" and Further Development of the "Poison Pill" Defense=561

Unitrin, Inc. v. American General Corp.=561

Carmody v. Toll Brothers, Inc.=581

Quickturn Design Systems, Inc. v. Shapiro=590

Notes=599

The Return of the Poison Pill : Lessons Learned From the Selectica and Barnes & Noble Cases / Louis Lehot ; Kevin Rooney ; John Tishler ; Camille Formosa=599

E. The Board's Decision to Sell the Company : The Duty to "Auction" the Firm=603

Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc.=603

Questions=614

Notes=615

City Capital Associates v. Interco, Inc.=619

Questions=632

Notes=633

Paramount Communications, Inc. v. Time, Inc.=634

Questions=645

Notes=646

Paramount Communications, Inc. v. QVC Network, Inc.=650

Questions=666

Notes=666

Lyondell Chemical Co. v. Ryan=668

Note=675

F. Board Approval of Acquisition Agreements and the Use of "Deal Protection Devices"=676

Questions=679

Brazen v. Bell Atlantic Corporation=680

Questions=685

Notes=686

Omnicare, Inc. v. NCS Healthcare, Inc.=693

Questions=721

Notes=722

In re The Topps Company Shareholders Litigation=724

Questions=739

Notes=740

G. Management Buyouts : The Duty of Loyalty and Conflicts of Interest=742

Gantler v. Stephens=742

Notes=753

H. "Going Private" Transactions : "Squeeze Outs" of Minority Interests and the Scope of Fiduciary Duty Obligations=754

Fixing Freeze-outs / Guhan Subramanian=755

Glassman v. Unocal Exploration Corp.=759

Notes=765

Fixing Freeze-outs / Guhan Subramanian=767

In re Cox Communications, Inc. Shareholders Litigation=770

Notes=792

I. The Ongoing Public Policy Debate : What Is the Proper Role for Target's Management?=794

Air Products and Chemicals, Inc. v. Airgas, Inc.=795

Questions=842

Notes=843

8. Tax, Accounting, and Antitrust Considerations Related to Mergers and Acquisition Transactions=845

A. Overview of Taxable Transactions vs. Tax-Deferred Reorganizations=845

1. Taxable Acquisitions=846

2. Tax-Deferred Reorganizations=846

B. Accounting for Business Combinations : Purchase Accounting and Elimination of Pooling-of-Interests Accounting=849

Takeover Law and Practice, David Silk & David Katz=849

C. Federal Antitrust Law and the Hart-Scott-Rodino Antitrust Improvement Act : An Overview of Hart-Scott-Rodino Requirements=850

Heublein, Inc. v. Federal Trade Commission=851

Appendices :

A. Diagrams of Deal Structures to Be Analyzed=859

B. Pfizer/Pharmacia Merger Agreement=873

C. Stock Purchase Agreement=923

D. Letter of Intent=993

E. Due Diligence Checklist=997

F. Closing Checklist=1003

G. Fairness Opinions=1009

Table of Cases=1021

Index=1027