M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

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Tuesday, June 5, 2007

Avaya's Break-Fees

Avaya yesterday filed the merger agreement with respect to its acquisition by Silver Lake and TPG Capital for approximately $8.2 billion or $17.50 per common share.  The deal terms appear rather standard for a private equity buy-out.  Avaya had previously announced that the agreement contained a fifty day go-shop; in what is becoming the norm, the agreement also sets a staggered break fee of $80 million during the go-shop period and $250 million thereafter.  For more on the transaction, see the Marketwatch article here.

The deal is a nice Illustration of the dynamic nature of our capital market and the effect of a thick M&A market.  Avaya was spun-off from Lucent.  Lucent has subsequently merged with Alcatel to form Alcatel Lucent.  And Lucent was itself was spun off by AT&T -- AT&T has itself been acquired by SBC which took on AT&T's name. 

http://lawprofessors.typepad.com/mergers/2007/06/avaya.html

Going-Privates, Private Equity, Transaction Defenses | Permalink

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