Even If You Have A Cursory Interest in M&A, This Is The Deal To Follow.

Analysis By Tshepo Magagane – Executive

A bids for C – what appears to be superior offer

B comes in bidding – B has anti-trust concerns – so it promises to give a huge part of the price before the deal consumates or is approved (it will only retain economic rights – not voting rights)

A sues going, they just want to scupper our deal!

Theory is that B does not even care if the deal closes, as long as they can block A from getting C as C cannot execute the strategy on its own!

AUDACIOUS STUFF – have never seen it!

Even if authorities block B – they money paid to C shareholders is already gone and they will still have “economic rights” to C – which you cant expunge and need to buy out even if they have no voting rights attached to them.