The Law of Mergers And Acquisitions

by Oesterle, Dale A.

• ISBN13: 9780314153913
• ISBN10: 0314153918
• Edition: 3rd
• Format: Hardcover
• Copyright: 2005-05-27
• Publisher: West Academic

Summary

Covers tax, accounting, environmental, products liability, pension, antitrust, national security, bankruptcy, and labor law. Builds on the basic four-credit corporations class, a modern corporate planning course. Integrates traditionally distinct classroom subjects in the context of discrete transactions. The materials are easy to edit. Each topical unit contains statutes, regulations, and case law that affect the structure and timing of acquisitions and reorganizations. Includes questions and problems to aid students in walking through the law's basic distinctions. Textual notes and edited articles identify and question the empirical and political assumptions implicit in the standards.

Table of Contents

Preface	v
Acknowledgments	vi
Summary of Contents	vii
Table of Cases	xxv
An Introduction to Acquisitions	1	(29)
Introduction	1	(1)
M & A Terminology	2	(7)
Customary Informal Understanding of Basic Terms	2	(3)
The Varying Typologies of M & A Professionals	5	(4)
Introduction to M & A Negotiations	9	(16)
Note: An M & A Deal Time Table	9	(4)
Valuation	13	(3)
Negotiating Tactics	16	(1)
David A. Lax & James K. Sebenius, The Manager as Negotiator	16	(2)
Pricing Issues in Deferred Closing Transactions	18	(1)
Note: Price Terms in Stock Swaps	19	(3)
Note: Post-Closing Adjustments	22	(3)
Do Acquisitions Create Value	25	(5)
Questions	28	(2)
The Mechanics of an Acquisition	30	(169)
State Corporate Codes	30	(98)
Introduction	30	(2)
The Basic Provisions of State Corporate Codes Relevant to Acquisitions	32	(3)
The Three Basic Forms: The Stock Swap Statutory Merger, the Cash-for-Assets Acquisition and the Cash-for-Stock Acquisition	35	(1)
A Plain Vanilla (or Stock Swap) Staturtory Merger: Delaware	35	(4)
Cash-for-Assets Acquisition	39	(2)
Note: ``Substantially All''	41	(1)
Hollinger Inc. v. Hollinger International, Inc.	42	(6)
Cash-for-Stock Acquisition: Delaware	48	(1)
Corporate Codes in Other States	49	(2)
Shidler v. All American Life and Financial Corp.	51	(5)
The Extraterritorial Effect of State Corporate Code Provisions on Shareholder Voting	56	(1)
Transaction Planning Alternatives	57	(1)
Stock-for-Asset Acquisitions	57	(1)
Heilbrunn v. Sun Chemical Corporation	58	(5)
Note: Reverse Asset Sale	63	(1)
Hariton v. Arco Electronics	64	(1)
Stock-for Stock Acquisitions	65	(1)
Irving Bank Corp v. Bank of New York Co., Inc.	66	(2)
Cash-Out Mergers	68	(2)
Rauch v. RCA Corporation	70	(4)
Question	74	(1)
Triangular Acquisitions	74	(2)
Equity Group Holdings v. DMG Inc.	76	(4)
Two-Stage Stock Acquisitions	80	(1)
Partnership and Long-Term Supply Contracts	81	(1)
Pratt v. Ballman-Cummings Furniture Co.	82	(1)
Good v. Lackawanna Leather Co.	83	(1)
Single-Firm Reorganizations, Reincorporations and Conversions	84	(2)
Federal United Corporation v. Havender	86	(3)
Elliot v. Avatex Corporation	89	(4)
Note: Conversions: Changes in Entity Form	93	(1)
VGS, Inc. v. Castiel	94	(3)
Question	97	(1)
The Dissenting Shareholders' Appraisal Remedy	97	(1)
The Mechanics of the Appraisal Remedy	98	(4)
ALI-ABA Rev. Model Business Corp. Act, § 13.31(a) (1999 rev.)	102	(1)
Barry M. Wertheimer, The Shareholders' Appraisal Remedy and How Courts Determine Fair Value	102	(2)
Note: Appraisals in Merger Involving a Controlling Shareholder	104	(1)
Case Law on Fair Value in Appraisal Proceedings	105	(1)
Cavalier Oil Corp. v. Harnett	105	(1)
Questions	106	(1)
M.G. Bancorporation, Inc. v. Le Beau	106	(12)
Weinberger v. UOP, Inc.	118	(5)
Cede & Co. v. Technicolor, Inc. (Cede III)	123	(4)
Questions	127	(1)
Note: Contractual Modification of the Appraisal Rights of Preferred Stock	128	(1)
Listing Requirements on Our National Stock Exchanges	128	(28)
Introduction to Stock Exchange Listing Requirements	128	(4)
The New York Stock Exchange Listing Requirements on Shareholder Voting in Acquisitions	132	(1)
New York Stock Exchange Listed Company Manual	132	(3)
The Policy Debate: Is the California Approach Better Than Delaware's, or Vice Versa?	135	(4)
The Limits of Legislation	139	(5)
Should Rules for Shareholder Voting on Acquisitions Be Optional	144	(2)
Frank Easterbrook & Daniel Fischel, The Corporate Contract	146	(2)
Louis Kornhauser, The Nexus of Contracts Approach to Corporations: A Comment on Easterbrook and Fischel	148	(3)
The Rational Investor's Choice of Voting and Appraisal Systems	151	(2)
Mandatory Rules in Legislatins as a Pre-Commitment Device?	153	(1)
Frank Easterbrook & Daniel Fischel, The Corporate Contract	153	(3)
Federal Securities Law Affecting the Mechanics of Acquisitions	156	(34)
Federal Law on Shareholder Voting In Acquisitions: Proxy Regulations	156	(5)
Federal Law on Stock Acquisitions: The Regulation of Tender Offers	161	(1)
An Introduction to the Williams Act	161	(2)
Katt v. Titan Acquisitions	163	(1)
Questions	164	(1)
Note: ``Mini-Tender Offers''	164	(3)
Note: Tender Offer Rules and the Internet	167	(1)
The Policy Debate on the Williams Act	167	(2)
Question	169	(1)
Dale A. Oesterle, The Rise and Fall of Street Sweep Takeovers	169	(2)
What Is a ``Tender Offer''?	171	(4)
Issuer Tender Offers and Going-Private Transactions	175	(1)
Federal Law Affecting Stock Swaps: Regulation of Public Offerings	176	(1)
Effect of the 1933 Act on Exchange Tender Offers	177	(3)
Effect of the 1933 Act on Statutory Mergers and Asset Acquisitions	180	(1)
Securities and Exchange Commission Rule 145: Reclassification of Securities, Mergers, Consolidations and Acquisitions of Assets	181	(4)
Note: Going Public With a ``Reverse Merger''	185	(1)
The Effect of the 1933 Act on Recapitalizations	186	(1)
SEC Division of Corp. Finance No-Action Letter, Time, Inc.	186	(2)
Federal Law on Stock Purchases Outside the Acquisition During an Acquisition by Constituent Parties	188	(2)
Question	190	(1)
Purchases of Financially Troubled Companies: The Requirements of Federal Bankruptcy Law	190	(9)
In re Lionel Corp.	193	(4)
Stephens Indus. v. McClung	197	(2)
Successorship to Assets and Liabilities: The Effect of an Acquisition on Outstanding Patent Licenses, Leases, Collective Bargaining Agreements, Pensions, and Contingent Product, Environmental, and Civil Rights Claims	199	(105)
Acquisition Negotiation as a Multi-Issue Bargain	199	(7)
Introduction to Multi-Issue Bargaining	199	(2)
David A. Lax and James Sebenius, The Manager as Negotiator	201	(1)
Question	202	(1)
Externalities and Other Forms of Opportunistic Behavior in Acquisitions	202	(4)
Question	206	(1)
Transfer of Assets, Licenses and Leaseholds in Acquisitions	206	(20)
Statutory Mergers: Vests in Survivor	206	(1)
PG Industries, Inc. v. Guardian Industries Corp.	206	(5)
Questions	211	(1)
Note: Federal Pre-emption and State ``Effect of Merger'' Statutes	212	(1)
Note: Purchasing High-Tech Companies	213	(2)
Stock Acqusition: No Transfer	215	(1)
Branmar Theatre Co. v. Branma, Inc.	215	(2)
Question	217	(1)
Asset Acquisitions: Transfer and Tradeoffs	217	(1)
Chemetall GMBH, v. ZR Energy, Inc.	218	(2)
Question	220	(1)
Sharon Steel Corporation v. Chase Manhattan Bank	220	(6)
Successor Liability	226	(33)
Asset Acquisitions and State Law on Successor Liability	226	(1)
Cargo Partner AG v. Albatrans, Inc.	227	(2)
Question	229	(1)
Ruiz v. Blentech Corporation	229	(4)
Domine v. Fulton Iron Works	233	(1)
Question	234	(1)
Successor Liability and Federal Statutes	234	(1)
Labor Law	234	(1)
Golden State Bottling Co. v. NLRB	234	(3)
Fall River Dyeing & Finishing Corp. v. NLRB	237	(4)
Note: ``Duty to Arbitrate'' Distinguished from ``Duty to Bargain''	241	(2)
Note: Contract Clauses Purporting to ``Bind Successors''	243	(1)
Canteen Corporation v. NLRB	244	(2)
Question	246	(1)
Environmental Liabilities	247	(1)
New York v. National Services Indus., Inc.	247	(6)
Note: Successor Liability Under CERCLA: Efficiency or Fairness?	253	(4)
How Can a Purchaser in an Asset Acquisition Minimize Its Involuntary Exposure to Seller's Liabilities?	257	(2)
Liability Avoidance Strategies and Countervailing Legal Rules	259	(45)
Asset Sale Followed by a Distribution of the Proceeds	259	(3)
In re RegO Company	262	(12)
In re PNP Holdings Corp.	274	(5)
Purchasing Assets From a Bankrupt Company	279	(2)
Ninth Avenue Remedial Group v. Allis-Chalmers Corp.	281	(7)
Questions	288	(1)
Chicago Truck Drivers, Helpers and Warehouse Workers Union Pension Fund v. Tasemkin	288	(1)
Question	289	(1)
Note: ``Interests'' Versus ``Claims'' Under § 363(f): When is ``Free and Clear'' not Free or Clear?	289	(1)
Spin-Offs, Split-Offs, Triangulars and Other Sleight of Hand Using Subsidiaries	290	(1)
Schmoll v. ACandS, Inc.	290	(6)
Celotex Corp. v. Hillsborough Holdings Corp.	296	(1)
Note: Section 524 (g) Proceedings for Asbestos Claims	297	(1)
United States v. Bestfoods	298	(3)
The Debtor's Residual Strategy: Bleed and Default	301	(3)
Acquisition Documents	304	(96)
Preliminary Documents	305	(21)
Confidentiality Agreements	305	(2)
Letters of Intent	307	(1)
AIG Acquisition Corp. v. Alaska Indus. Hardware, Inc.	308	(4)
Questions	312	(3)
Texaco, Inc. v. Pennzoil Co.	315	(11)
The Acquisition Agreement and Supporting Documents	326	(34)
The Basic Agreement	326	(2)
Representation	328	(1)
Note: Representations and Warranties Insurance	329	(1)
Covenants and Conditions	330	(2)
Indemnification	332	(2)
Negotiating the Documents: Form Practice	334	(3)
Stephen I. Glover, Indemnification Provisions in Acquisition Agreements: Is There Such a Thing as Standard Practice?	337	(3)
Supplemental Documents	340	(3)
O'Tool v. Genmar Holdings, Inc.	343	(7)
Richmond v. Peters	350	(2)
Questions	352	(1)
Acquisition Review Documents	352	(4)
Contingent Terms in, Amendments to and Abandonment of Acquisition Agreements	356	(2)
Deal Protection Covenants	358	(2)
Closing Documents	360	(9)
Marcus v. Frome	364	(5)
Litigation Among Parties to Acquisition Contracts	369	(24)
Buyer Purchases a ``Pig in a Poke''	369	(1)
Buyer Claims Breach of Contract	369	(1)
Medcom Holding Co. v. Baxter Travenol Labs., Inc.	369	(3)
Buyer Claims Violation of Rule 10b-5	372	(1)
AES Corp. v. The Dow Chemical Co.	372	(7)
Question	379	(1)
The Buyer Refuses to Close	379	(1)
In re IBP, Inc. Shareholders Litigation -- IBP, Inc. v. Tyson Foods, Inc.	379	(9)
Cities Service Co. v. Gulf Oil Corp.	388	(2)
Note: Terrorism and MAC Clauses	390	(1)
Third-Party Beneficiary Claims	390	(1)
Merzin v. Provident Financial Group Inc.	390	(2)
Prouty v. Gores Technology Group	392	(1)
Mergers in Regulated Industries	393	(7)
Allegheny Energy, Inc. v. DQE, Inc.	394	(3)
Subsequent History of the Allegheny Case	397	(1)
Note: Regulatory Extortion	397	(3)
The Legal Duties of Boards of Directors, Senior Executives and Controlling Shareholders	400	(277)
A Board's Duties in Negotiated Acquisitions	400	(111)
The Duty of Care	401	(1)
Smith v. Van Gorkom	401	(10)
Parnes v. Bally Entertainment Corp.	411	(1)
Note: The Effect of Van Gorkom on Stock Prices, Fairness Opinions and D & O Insurance	411	(1)
Cede & Co. v. Technicolor, Inc. (Cede II)	412	(2)
Note: The Fall-Back Test When the Business Judgment Rule Fails: Negligence or Entire Fairness?	414	(1)
Cinerama, Inc. v. Technicolor, Inc. (Cede III)	415	(12)
Questions	427	(1)
The Purchasing Board's Decision to Acquire a Company	427	(1)
Ash v. McCall	427	(9)
Note: The ``Shop `Til You Drop'' '90s	436	(3)
Hewlett v. Hewlett-Packard Co.	439	(9)
Note: Subsequent History in the Hewlett-Packard Case	448	(1)
Duty of Loyalty: Conflict of Interest Transactions	449	(1)
General Principles: When are Directors Disinterested and Independent?	450	(1)
Orman v. Cullman	450	(11)
Note: Sarbanes-Oxley and Lasting Requirements on the Definition of Independent	461	(1)
Squeeze-Out Mergers: Acquisitions of a Minority Interest in a Controlled Subsidiary	462	(1)
Weinberg v. UOP, Inc.	462	(3)
Rosenblatt v. Getty Oil Co.	465	(1)
Glassman v. Unocal Exploration	466	(1)
Note: Cleansing Processes Effect on the Standard of Review	467	(1)
William T. Allen, Independent Directors in MBO Transactions: Are They Fact or Fantasy?	468	(1)
Questions	469	(1)
Note: Compensation of Special Negotiating Committees	469	(1)
Tender Offers for Minority Shares by Controlling Shareholders: The Coercion Test	470	(1)
In re Pure Resources, Inc., Shareholder Litigation	471	(4)
Note: Squeeze-Outs and Tender Offers Compared	475	(1)
Note: Delaware Case on the Obligations of the Target Board in a Tender Offer	476	(2)
Minority Stock Repurchases in Anticipation of an Acquisition	478	(1)
Lawton v. Nyman	478	(6)
Recapitalization	484	(1)
Levco Alternative fund v. The Reader's Digest Assoc.	484	(3)
Legal Duties of Controlling Shareholders in Negotiated Acquisitions	487	(1)
No General Obligation to Share the Proceed from the Sale of a Controlling Block of Stock	487	(1)
Zetlin v. Hanson Holdings, Inc.	487	(1)
Note: Target Shareholders Buying Voting Power in the Bidder	488	(1)
Question	488	(1)
Note: The Empirical Evidence of the Effect of Block Trades on Minority Shareholders	489	(1)
McMullin v. Beran	489	(3)
Question	492	(1)
In re Digex, Inc. Shareholder Litigation	492	(1)
Question	493	(1)
Hollinger International, Inc. v. Conrad Black	494	(2)
The Duty Not to Sell to a ``Looter''	496	(1)
Debaun v. First Western Bank and Trust Co.	496	(5)
Harris v. Carter	501	(1)
The Duty Not to Sell to an Office	502	(1)
Essex Universe Corp. v. Yates	502	(4)
The Duty Not to Usurp Corporate Opportunities	506	(1)
Thorpe v. Cerbco, Inc.	506	(5)
Note: Allegations of Waste	511	(1)
A Target Board's Decision to Block a Takeover	511	(130)
Introduction to Firm-Specific Takeover Defenses	511	(1)
A Classification of the Defenses	511	(8)
Note: Rule 14a-8 Shareholder Resolutions on Anti-takeover Defenses	519	(3)
Defenses Void Ab Initio Under State Law or in Violation of Exchange Listing Requirements	522	(1)
Quickturn Design Systems, Inc. v. Shapiro	522	(1)
Questions	523	(1)
Note: Stock Exchange Restrictions on Voting Rights Plans	524	(2)
Sec Exchange Act Rel. Nos. 25891 & 25891A (July 7 & 13, 1988)	526	(2)
Empirical Data on the Use and Effect of the Takeover Defenses	528	(4)
Note: High-Tech Company IPOs and Anti-takeover Defenses	532	(1)
Fiduciary Duty and a Board's Decisions to Block Takeovers	533	(1)
Introduction to the Enhanced Scrutiny Test (Unocal Test)	533	(1)
Unitrin, Inc. v. American General Corp.	534	(9)
Question	543	(1)
Chesapeake Corp. v. Shore	544	(5)
Paramount Communications, Inc. v. Time, Inc.	549	(1)
Shamrock Holdings, Inc. v. Polaroid Corp.	549	(2)
Ohio Gen. Corp. Law § 1701.59	551	(1)
Question	551	(1)
Note: Empirical Evidence on Blocked Takeover	551	(2)
Dale Oesterle, The Negotiation Model of Tender Offer Defenses and The Delaware Supreme Court	553	(5)
Note: Unocal and Assertions of the Attorney-Client or Business Strategy Privileges	558	(1)
Blocking One Bidder to Favor Another: The Revlon Zone	558	(1)
Revlon, Inc. v. Mac Andrews& Forbes Holdings, Inc.	558	(8)
Willard v. Moneta Building Supply, Inc.	566	(1)
Paramount Communications v. QVC Network	566	(10)
William T. Allen, Jack B. Jacobson and Leo E. Strive, Jr., Function Over Form: A reassessment of Standards of Review in Delaware Corporate Law	576	(1)
Arnold v. Society For Savings BanCorp, Inc.	576	(2)
Question	578	(1)
Note: Does the Revlon Duty Apply in Chapter 11	579	(1)
Deal Protection Covenants in Negotiated Acquisitions: Revlon, Unocal or the Business Judgment Rule?	580	(1)
Omnicare, Inc. v. NCS Health Care, Inc.	581	(12)
Questin	593	(1)
Brazen v. Bell Atlantic Corp.	593	(5)
Question	598	(1)
Note: A Report Card on the Performance of the Delaware Courts in Acquisition Cases	598	(1)
State Statutes That Aid Directors' Efforts to Thwart Unwanted Takeovers: ``Anti-Takeover Statutes,'' ``Other Constituency Statutes,'' and ``Liability Limitation Statutes''	599	(1)
Note: The Go-Go '80s: The Decade of Greed?	599	(4)
Anti-Takeover Statutes	603	(1)
BNS Inc. v. Koppers Company, Inc.	603	(10)
RP Acquisition Corp. v. Staley Continental, Inc.	613	(1)
WLR Foods, Inc. v. Tyson Foods, Inc.	614	(1)
Note: Comments on Anti-Takeover Statutes	615	(1)
``102(b)(7) Liability Limitation'' Provisions	616	(1)
Arnold v. Society For Savings [Arnold I] BankCorp, Inc.	617	(1)
Arnold v. Society For Savings [Arnold II] BankCorp, Inc.	617	(1)
Emerald Partners v. Berlin	618	(1)
``Other Constituency Statutes''	619	(1)
What's Left for Hostile Bidders?	620	(1)
No Financial Takeovers: The Changing Face of LBOs	620	(4)
The Combination Tender Offer/Proxy Fight	624	(1)
Blasius Industries, Inc. v. Atlas Corp.	625	(5)
MM Companies, Inc. v. Liquid Audio, Inc.	630	(1)
Question	631	(1)
Hilton Hotels Corp. v. ITT Corp.	631	(7)
Question	638	(1)
Note: History of the Hilton Hotels Takeover	638	(1)
Bribes	639	(1)
In re Money Group, Inc. Shareholders Litigation	639	(2)
The Stakeholder Debate: Should the Board's Primary Obligation in Acquisitions Be to Maximize Shareholder Value?	641	(20)
Long-Term Interests of the Community: The CSX Acquisition of Conrail and Herald's Attempt to Buy the Denver Post	641	(1)
Norfolk Southern v. Conrail	641	(2)
Sarah S. Nickerson, The Sale of Conrail: Pennsylvania's Anti-Takeover Statutes Versus Shareholder Interests	643	(3)
Questions	646	(1)
Note: Comment on the Pennsylvania Statutes	647	(1)
Herald Co. v. Seawell	647	(2)
Question	649	(1)
The Plight of Pre-Existing Bondholders in an LBO: The RJR Nabisco Buy-Out	649	(1)
Metropolitan Life Ins. Co. v. RJR Nabisco, Inc.	649	(8)
McMahan & Company v. Wherehouse Entertainment, Inc.	657	(2)
Air Line Pilots Ass'n Intern, v. UAL Corp.	659	(1)
Data on Stakeholder Welfare in Acquisitions	660	(1)
Fiduciary of Acquisition Consultants and Advisors	661	(9)
In re Daisy Systems Corporation	661	(8)
Question	669	(1)
Note: The History of the Daisy Systems Case	669	(1)
Takeovers in Bankruptcy: Claims Trading	670	(7)
In re Allegheny International, Inc.	670	(6)
Note: Rule Change	676	(1)
The Disclosure Requirements of the Federal Securities Acts and State Law	677	(99)
Disclosure Requirements of the Federal Securities Acts	677	(76)
Introduction to Mandatory Disclosure Requirements Under Federal Securities Law	677	(5)
Materiality	682	(6)
TSC Industries, Inc. v. Northway, Inc.	688	(1)
Questions	689	(2)
Lewis v. Chrysler Corporation	691	(4)
Pleading Standards: The PSLRA	695	(1)
Goldstein v. MCI WorldCom	695	(8)
Analysis of the Plaintiffs' Rule 60(b)(2) Request	703	(1)
Projections of Post-Acquisition Performance	704	(1)
SEC Forms and Schedules: Disclosures of Forward-Looking Information Required of Firms Executing Acquisitions	705	(1)
SEC Reg. § 210.11-02(a)	706	(3)
Note: The Obligation to Disclose ``Plans and Purposes'' and Expert ``Reports, Opinions, and Appraisals''	709	(1)
Sec Rules on Permitted or Voluntary Projections	710	(1)
Question	710	(2)
Note: The Duty to Amend, Correct or Update Projections	712	(1)
Case Law on Projections	713	(1)
Virginia Bankshares, Inc. v. Sandberg	713	(4)
Grossman v. Novell, Inc.	717	(8)
Question	725	(1)
Walker v. Action Industries, Inc.	725	(5)
Question	730	(1)
The Duty to Disclose Preliminary Merger Negotiations	731	(1)
Basic, Inc. v. Levinson	731	(5)
Note: What Triggers the Duty to Disclose?	736	(1)
Sec Act Rel. No. 33-6835; Exch. Act Rel. No. 34-26831 (May 18, 1989)	736	(2)
New York Stock Exchange Manual	738	(2)
Question	740	(1)
Note: Footnote 17 in Basic v. Levinson: A Confusing Bit of Dicta on the Business Purpose Exception	740	(3)
Phillips v. LCI International, Inc.	743	(2)
Weiner v. Quaker Oats Co.	745	(2)
Gun Jumping: Pre-Filing Announcements	747	(1)
Disclosing Stock Purchases of 5 Percent or Greater	748	(1)
Rondeau v. Mosinee Paper Corp.	748	(5)
Note: The Effect of § 13(d)	753	(1)
Insider Trading in Advance of Acquisitions	753	(13)
Sec Rules 10b-5 and 14e-3	753	(1)
United States v. O'Hagan	753	(6)
Note: Insider Trading in Advance of Acquisition Announcements	759	(1)
Section 16(b) of the 1934 Act: A Trap for Losing Bidders	760	(1)
Texas International Airlines v. National Airlines, Inc.	760	(3)
Sterman v. Ferro Corp.	763	(1)
Note: The Short-Swing Profit Rule's Application to Shares Exchanged by Officers and Directors in Mergers	764	(2)
State Law	766	(10)
Zirn v. VLI Corp.	766	(1)
Skeen v. Jo-Ann Stores, Inc.	767	(8)
Questions	775	(1)
Accounting and Tax Issues in Mergers and Acquisitions	776	(78)
Accounting for Mergers and Acquisitions	777	(22)
Introduction to Financial Statements	777	(2)
Introduction to Accounting Issues in Intercompany Ownership	779	(2)
Cost Method: Acquisitions of Less Than 20 Percent of Target's Outstanding Common Stock	781	(3)
Equity Method: Acquisitions of 20 Percent to 50 Percent of Target's Outstanding Stock	784	(3)
Consolidations: One Company Acquires Over 50 Percent of the Stock of Another	787	(5)
Note: Accounting Rules' Effect on the Size of an Acquisition	792	(1)
Note: Historical Account of Pooling Accounting	793	(2)
Note: Goodwill Games	795	(1)
Note: WorldCom: Acquisition Accounting as a Ponzi Scheme	796	(1)
Accounting for LBOs	797	(2)
Tax Treatment of Mergers, Acquisitions, and Reorganizations	799	(55)
Introduction to the Transactional Base of Our Federal Income Tax	799	(1)
The Definition of a Tax-Free Reorganization	800	(5)
Internal Revenue Code § 368	805	(2)
Treasury Regulation § 1.368-1	807	(1)
Rev. Proc. 77-37, § 3.02	808	(1)
Questions	808	(1)
T.D. 7745, 1981-1 C.B. 134	809	(1)
Note: Advance Rulings from the IRS	809	(1)
The Tax Consequences of Qualifying as a Tax-Free Reorganization	810	(3)
Note: Why Use a Taxable Exchange?	813	(1)
Note: Election of Form and Allocation of Purchase Price Issues in Taxable Acquisitions	814	(2)
Note: Some Significant Planning Choices for Taxable Stock Acquisitions	816	(3)
The Policy Debate on Tax-Free Reorganizations	819	(1)
American Law Institute, Proposals on Corporate Acquisitions and Dispositions	819	(3)
Note: 1985 Senate Finance Committee Staff Reform Proposal	822	(1)
Steven A. Bank, Mergers, Taxes and Historical Realism	822	(3)
When Are Acquisitions Driven Purely by Tax Avoidance?	825	(1)
Survival of Tax Attributes in an Acquisition	826	(1)
Tax Reform Act of 1986	827	(2)
Note: Restriction on the Fusion of Pre-Acquisition Losses and Gaines: IRC § 384	829	(1)
Omnibus Budget Reconciliation Act of 1989	829	(1)
Leverage in Acquisitions and the Corporate Tax System	830	(1)
Staff Report, Federal Income Tax Aspects of Corporate Financial Structures	830	(9)
Comment: Integrated Effects of Corporate Debt Financing on Tax Collections	839	(1)
Michael Jensen, Steven Kaplan & Laura Stiglan, Effects of LBOs on Tax Revenues of the U.S. Treasury	840	(2)
Alvin C. Warren, Jr., Recent Corporate Restructuring and the Corporate Tax System	842	(1)
Note: Congress' Response to the Tax Incentive to Leveraged Acquisition Financing	843	(2)
Omnibus Budget Reconciliation Act of 1989	845	(1)
Miscellaneous Tax Provisions Relevant to Acquisitions: Golden Parachutes, Greenmail, Poison Pills, and Acquisition Expenses	846	(1)
Golden Parachutes: §§ 280G and 4999	846	(1)
IRS Proposed Regulations, Golden Parachutes § 1.280G-1	847	(1)
Greenmail: § 5881	848	(1)
Revenue Act of 1987	848	(1)
Question	848	(1)
Excise Tax on Terminating Overfunded Pension Plans	849	(2)
Deductibility of Acquisition Fees and Expenses	851	(1)
Indopco, Inc. v. Commissioner	851	(2)
A.E. Staley Mfg. Co. v. Commissioner	853	(1)
Protecting Consumer Interests in Mergers and Acquisitions: The Clayton Act	854	(53)
The Clayton Act	854	(26)
Clayton Act, § 7	855	(2)
Dep't of Justice & Fed. Trade Comm., 1992 Horizontal Merger Guidelines	857	(8)
Questions	865	(1)
Midwestern Machinery, Inc. v. Northwest Airlines, Inc.	865	(2)
United States v. Oracle Corporation	867	(12)
Note: Aftermath of the Oracle Opinion	879	(1)
Price Fixing Among Bidders	880	(3)
Finnegan v. Campeau Corp.	880	(3)
Question	883	(1)
Pre-Merger Notification: The Hart-Scott-Rodino Antitrust Improvements Act of 1976	883	(24)
Hart-Scott-Rodino Antitrust Improvements Act of 1976, Title II	884	(4)
Rules, Regulations, Statements and Interpretations Under the Hart-Scott-Rodino Antitrust Improvements Act of 1976	888	(2)
The HSR Notification and Report Form	890	(1)
The HSR Waiting Period	890	(5)
California v. American Stores Co.	895	(3)
United States v. Computer Associates	898	(9)
Issues in International Acquisitions	907	(55)
Foreign Acquisitions of United States Corporations	907	(26)
Acquisitions That ``Impair National Security''---the Exon-Florio Amendment	907	(2)
Exon-Florio Amendment (§ 5021 of the Omnibus Trade and Competitiveness Act of 1988 adding § 721 to the Defense Production Act of 1950)	909	(2)
Treasury Regulations	911	(3)
Note: The Definition of National Security	914	(1)
Jeremy David Sacks, Monopsony and the Archers: Rethinking Foreign Acquisitions After Thomson-LTV	915	(2)
Note: The Effect of Exon-Florio on Hostile Acquisitions and Acquisition Timing	917	(3)
Federal Legislation Specific to Foreign Acquisitions in Particular Industries or Assets	920	(3)
Other Countries' Investment Barriers	923	(2)
International Agreements on Foreign Direct Investment	925	(1)
Am. Soc'y of Int'l Law Proceedings, Implementation, Compliance and Effectiveness: Toward an Effective International Investment Regime	925	(8)
Extra-territorial Application of United States Laws to Foreign Acquisitions	933	(21)
Federal Securities Laws	933	(1)
Sec, Proposed Rules, Cross-Border Tender and Exchange Offers, Business Combinations and Rights Offerings	933	(4)
Questions	937	(1)
Consolidated Gold Fields, PLC v. Minorco, S.A.	938	(3)
Question	941	(1)
Antitrust Laws	941	(1)
Dep't of Justice & Federal Trade Comm'n, Antitrust Enforcement Guidelines for International Operations	942	(5)
Question	947	(1)
Note: Conflicts with our Trading Partners	947	(1)
United Kingdom Protection of Trading Interests Act of 1980	947	(2)
Question	949	(1)
Jeffrey M. Peterson, Unrest in the European Commission: The Changing Landscape and Politics of International Mergers for United States Companies	949	(3)
The New EC Merger Regulation: A First Assessment of its Practical Impact	952	(2)
Comparative Takeover Law	954	(8)
European Parliament and Council Directive 2004/25/EC of 21 April 2004 on Takeover Bids	954	(5)
Questions	959	(1)
The Future of Takeover Defenses in Europe	959	(3)
Index	962