SOURCE: Practical Law Company

Practical Law Company

April 20, 2011 09:09 ET

Practical Law Company Releases M&A Report on Latest Trends in Reverse Break-Up Fees & Specific Performance

Second Annual Study Provides Corporate Lawyers With Critical Year-in-Review Intelligence

NEW YORK, NY--(Marketwire - Apr 20, 2011) - The highest reverse break-up fees were payable in deals where target companies also negotiated a right to specific performance, according to Reverse Break-Up Fees and Specific Performance: A Survey of Remedies in Public Deals, 2011 Edition, a new study by Practical Law Company (PLC), a provider of online practical know-how for law firms and law departments. Excerpts from the study, which reviewed the reverse break-up fees and specific performance provisions in 181 public company merger agreements in 2010 with a signing value of at least $100 million, were presented by PLC at the M&A Committee meeting of the American Bar Association's Business Law Section on April 15-16.

The second annual study also found that target companies have been successful charging premiums for reverse break-up fees over and above the amounts they must pay as break-up fees to accept superior proposals, confirming a trend cited in last year's study. PLC attorney editors based the study's conclusions on data from PLC What's Market, PLC's proprietary tool that allows users to, among other things, search summaries of public M&A deals and compare all the buyer-breach terms simultaneously.

"PLC What's Market allowed us to compare nearly 200 deals side by side and get a complete view of today's market," says Chris Lafferty, Head of PLC What's Market. "For the second year in a row, PLC was able to provide frontline lawyers with critical year-in-review intelligence about how dealmakers structure remedies in public M&A deals."

The complete study is available for free download: www.plcdealstudy.com.

Register for a free 30-minute webinar on the study's findings: http://bit.ly/fRorCb

Practical Law Company (PLC)provides practical legal know-how for law firms, law departments and law schools. A leader in market intelligence, PLC offers online resources that help lawyers get up to speed quickly, practice more efficiently and spend more time on the work that matters most. For more information, visit www.practicallaw.com, call 646.562.3405 or follow on Twitter http://twitter.com/PracticalLawUS.

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