"Obviously, with this type of transaction that just took place, it wasn't easy".
Have you heard of this type of transaction and is it recommended?
"As I look to the future, I will take a close look at this type of transaction," he said.
In the United States, the federal government has supported this type of transaction by developing a secondary market in mortgages.
True to the most optional form of this type of transaction, the merger agreement caps Mars' maximum liability at $1 billion and bars specific performance.
Mr. Shmulewitz countered, "Legally speaking, a shareholder vote is not necessary; the board has the absolute authority to enter into this type of transaction itself".
But the administrative proceeding could also be seen as a shot across the bow for companies considering this type of transaction.
"So we looked at all three schemes and with the most recent schemes there didn't seem to be much value in pursuing anything because they remain very good value in terms of this type of transaction.
But when the acquirer is a controlling shareholder, Delaware has traditionally imposed a higher standard of review to ensure that this type of transaction, commonly known as a freeze-out transaction, is fair to shareholders.
Your concerns about the financial health of the insurer are legitimate: in the 1980s there was a rash of this type of transaction, led by a junk-bond-fueled insurer called Executive Life, which did finally go belly up.
According to NASD, Ameritrade and units Datek and IClearing, acquired in September 2002, allowed this type of transaction to occur for over 2 million transactions in 30,000 cash accounts.
