Tasting The Difference In A Cross-Border Deal
Professor Joseph Grundfest, an expert in corporate law, is mentioned in the New York Times Deal Book:
Kraft Foods‘ Labor Day announcement of a bear-hug letter delivered to Cadbury is a treat in many ways.
There is the prospect of a big, cross-border takeover in a time of M.&A. malaise; fees galore for hungry bankers and lawyers; and the potential of a third-party bidder and a “Barbarians at the Gate” redux. Kraft’s unsolicited bid for Cadbury, a British chocolate maker, also shows once again that the domestic M.&A. market is only a fraction of the deal terrain.
As I discuss in my forthcoming book, “Gods at War: Shotgun Takeovers, Government by Deal and the Private Equity Implosion,” a driver of future deal growth will probably come from cross-border and intraregional takeovers. All of this is good news to digest.
But because shareholder meetings are, as Joseph Grundfest of Stanford Law School once described them, like tulips sprouting once a year, bidders must often time their hostiles with the target’s shareholder meeting to put maximum pressure on the target.