August 16, 2006
Ackman v Lampert
Jess Eisinger's fine reporting on the Sears Canada takeover by Eddie Lampert (Long & Short, Wall Street Journal) illustrates a growing problem in United States takeovers as well. Buyers are negotiating complicated side deals with shareholders and the side deals may violate the equal price rule of tender offers, a rule which requires that all shareholders get the same price. I think the rule, which disallows price discrimination is a bad rule, but it is there. [Holman W. Jenkins Jr. would excuse the violations therefore perhaps.] We will see some United States cases on the issue as well.
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