{"id":829,"date":"2013-05-11T20:41:05","date_gmt":"2013-05-11T17:41:05","guid":{"rendered":"http:\/\/www.forzaq8.net\/?p=829"},"modified":"2013-05-11T20:48:26","modified_gmt":"2013-05-11T17:48:26","slug":"lies-about-dow-and-other-points-english","status":"publish","type":"post","link":"http:\/\/www.forzaq8.net\/?p=829","title":{"rendered":"Lies About K-Dow and other Points [English]"},"content":{"rendered":"<p>While i don&#8217;t want to discuss the economic advantage or disadvantage of the K-Dow i don&#8217;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&#8217;t true<\/p>\n<p><strong><br \/>\n-No other deal had a penalty for canceling the deal<br \/>\n<\/strong><\/p>\n<p>Not True , a lot of Deals have a penalty for canceling , they add it to make sure you serious about it <\/p>\n<blockquote><p>Almost two-thirds of the merger agreements announced between 1997 and 1999<br \/>\nincluded a target termination fee clause. A target termination, or breakup, fee clause<br \/>\nrequires that the target pay the bidder a \ufb01xed cash fee if the target does not<br \/>\nconsummate the proposed merger<\/p><\/blockquote>\n<p>from paper published on <a href=\"http:\/\/leeds-faculty.colorado.edu\/bhagat\/terminationfees.pdf\" target=\"_blank\">Termination fees in mergers and acquisitions<\/a><\/p>\n<p>an example of Fee if you walk away from a merger <\/p>\n<blockquote><p>The commodities trading giant Glencore will be forced to hand over nearly \u00a3300m to the FTSE 100 miner Xstrata, should it walk away from the \u00a350bn merger as a result of shareholder pressure<\/p><\/blockquote>\n<p><a href=\"http:\/\/www.independent.co.uk\/news\/business\/news\/glencore-could-pay-300m-if-merger-fails-7901672.html\" target=\"_blank\">glencore <\/a><\/p>\n<p><strong>&#8211; That a 2 billion dollar is the highest penalty ever !<\/strong><\/p>\n<p> AT&#038;T penalty was worth 4 billion , 3 of it in cash , so that doesn&#8217;t make K-Dow the highest<\/p>\n<blockquote><p>AT&#038;T agreed to pay 3 billion cash and 1 billion worth of spectrum if the deal fell<\/p><\/blockquote>\n<p> <a href=\"http:\/\/arstechnica.com\/tech-policy\/2011\/12\/att-admits-defeat-on-t-mobile-takeover-will-pay-4-billion-breakup-fee\/\" target=\"_blank\">AT&#038;T and T-mobile merger<\/a><\/p>\n<p><strong>&#8211; 2.5 billion for a 17 billion deal is too much<\/strong><br \/>\nactually , that is a 14% ( 2.5 out of 17 ) , while the AT&#038;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% <\/p>\n<p><a href=\"http:\/\/www.reuters.com\/article\/2008\/12\/29\/us-kuwait-dow-idUSTRE4BR1M920081229\" title=\"17 \" target=\"_blank\">The Source of the 17 Billion figure<\/a><\/p>\n<p>Further reads<br \/>\n<a href=\"http:\/\/en.wikipedia.org\/wiki\/Attempted_purchase_of_T-Mobile_USA_by_AT%26T\" target=\"_blank\"> Wikipedia article on AT&#038;T T-Mobile deal<\/a><br \/>\n<a href=\"http:\/\/en.wikipedia.org\/wiki\/K-Dow_Petrochemicals\" target=\"_blank\">Wikipedia Article on K-dow<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While i don&#8217;t want to discuss the economic advantage or disadvantage of the K-Dow i don&#8217;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&#8217;t true -No other deal had &hellip; <a href=\"http:\/\/www.forzaq8.net\/?p=829\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Lies About K-Dow and other Points [English]<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7,18,2,14],"tags":[],"_links":{"self":[{"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=\/wp\/v2\/posts\/829"}],"collection":[{"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=829"}],"version-history":[{"count":11,"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=\/wp\/v2\/posts\/829\/revisions"}],"predecessor-version":[{"id":844,"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=\/wp\/v2\/posts\/829\/revisions\/844"}],"wp:attachment":[{"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=829"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.forzaq8.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}