In January 2005, the IRS further expanded the meaning of a statutory merger or consolidation by issuing proposed regulations eliminating the necessity for a transaction to be effected pursuant to domestic laws.
Because many foreign jurisdictions now have merger statutes that operate like those of the states, under which all assets and liabilities move by operation of law, the change in the definition of an A reorganization now allows transactions effected pursuant to these statutes to qualify as statutory mergers or consolidations for Sec.
com, reverse mergers are lighter on the wallet than an IPO: a reverse merger typically costs between $50,000 and $100,000, about one-quarter the expense of an IPO.
When contemplating a reverse merger, for example, a company must be prepared to surrender as much as 20 percent ownership to the shell company.
agreement was approved by the board of directors of FNIS, following the recommendation of a special committee of the FNIS board of directors, and by the board of directors of FNF, following the recommendation of a special committee of the FNF board of directors.
may be accomplished tax-free for both parties.
integration is an enterprisewide affair involving nearly every function and business unit.
In 1998 its $72 billion acquisition of Ameritech was the third largest merger
of the year.
The high level of merger
activity since 1980; along with a large number of bank failures, is reflected in a steady decline an the number of U.
A major reason given of why so many mergers
yield disappointing results is that the leadership group in the pre-merger
period devotes insufficient critical study to determine how the potential partners' operations can be most effectively integrated to achieve maximum efficiency.
the Supreme Court held that the surviving corporation in what it concluded was a statutory merger
under Pennsylvania law could deduct unamortized discount and expenses with respect to bonds issued by the transferor and retired by the surviving corporation.
Domestic law: Despite the fact that each of the merger
participants is a foreign entity, the transaction nevertheless is a statutory merger
and, thus, a good A reorganization, because both Z and Y are qualified participants, and the transaction is not divisive.
Behind all the merger
mania are not just corporate egos but companies' desires to slake analysts' thirst for growth.
may get a thumbs-down if advisers are not familiar with antitrust economics.