Go-Shops Revisited

The Original Study, which examined deals announced in 2006-07, reported that a higher bid emerged during the go-shop period 12.5% of the time (6 instances out of 48 go-shop deals). Using a new database of M&A transactions over the past nine years, we find that the jump rate in the 2010-2018 timeframe was 5.6% (6 out of 108 go-shops), declining to 2.5% (1 out of 40) in the period 2015-2018. The last successful go-shop in our sample occurred approximately three years ago, in January 2016, when II-VI Inc. successfully jumped GaAs Labs’ offer for ANADIGICS, Inc. during a 25-day go-shop period.

As one of us concluded in the Original Study, “go-shop provisions can be a better mousetrap’ in deal structuring – a `win-win’ for both buyer and seller.”  However, over the ensuing decade, a broader set of transactional planners distorted the go-shop technology in ways that achieve their clients’ objectives but no longer satisfy broader corporate law objectives of promoting allocational efficiency in the M&A marketplace. (footnote omitted)

via Harvard, SSRN


このデラウェア州一般会社法203条に関するGuhan Subramanian教授の講演は,Francis G. Pileggiを記念して毎年行われているものです(The 29th Annual Francis G. Pileggi Distinguished Lecture in Law)。この講演のビデオを試聴することができます。

講演は,Delaware Journal of Corporate Lawに掲載されますが,既にドラフトがSSRNにアップロードされています。

DGCL 203の合憲性への疑問と今後の対応について議論しています。

via HLS