Lies About K-Dow and other Points [English]

While i don’t want to discuss the economic advantage or disadvantage of the K-Dow i don’t have the right numbers to analyze which i hope was done by the people signing it in the first place , but here are some stuff that i see people keep repeating which aren’t true

-No other deal had a penalty for canceling the deal

Not True , a lot of Deals have a penalty for canceling , they add it to make sure you serious about it

Almost two-thirds of the merger agreements announced between 1997 and 1999
included a target termination fee clause. A target termination, or breakup, fee clause
requires that the target pay the bidder a fixed cash fee if the target does not
consummate the proposed merger

from paper published on Termination fees in mergers and acquisitions

an example of Fee if you walk away from a merger

The commodities trading giant Glencore will be forced to hand over nearly £300m to the FTSE 100 miner Xstrata, should it walk away from the £50bn merger as a result of shareholder pressure


– That a 2 billion dollar is the highest penalty ever !

AT&T penalty was worth 4 billion , 3 of it in cash , so that doesn’t make K-Dow the highest

AT&T agreed to pay 3 billion cash and 1 billion worth of spectrum if the deal fell

AT&T and T-mobile merger

– 2.5 billion for a 17 billion deal is too much
actually , that is a 14% ( 2.5 out of 17 ) , while the AT&T deal was 10% ( 4 billion out of 39 ) , very close if you ask me , and we ended up paying 2.1 billion aka 12%

The Source of the 17 Billion figure

Further reads
Wikipedia article on AT&T T-Mobile deal
Wikipedia Article on K-dow

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