Most Big M&A Deals Faced Legal Challenges in 2012
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It was a rare merger or acquisition deal in 2012 that escaped legal challenges from shareholders, according to a study released Thursday by Cornerstone Research, which specializes in analyzing financial issues in commercial litigation and regulatory proceedings.
Some 96 percent of M&A deals valued over $500 million and 93 percent of those valued over $100 million engendered suits, according to “Shareholder Litigation Involving Mergers and Acquisitions” [PDF].
The report was co-authored by Olga Koumrian, a principal of Cornerstone, along with business and law professor Robert Daines of the Stanford Law School. Daines is also co-director of Stanford’s Rock Center on Corporate Governance.
“Death, taxes, and deal litigation are the three most inescapable things,” Daines told CorpCounsel.com. “Essentially nearly all merger deals get challenged.”
Read original articleTags: commercial litigation, Cornerstone, Cornerstone Research, Olga Koumrian, Robert Daines
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