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Breakup Fee

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BUSINESS
April 8, 2005 | From Bloomberg News
ChevronTexaco Corp.'s $16.4-billion plan to acquire Unocal Corp. includes a $500-million breakup fee if the transaction is canceled. A Securities and Exchange Commission filing by San Ramon, Calif.-based ChevronTexaco disclosed details of the termination fee it would be paid. The deal was announced Monday.
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BUSINESS
January 14, 2013 | By Tiffany Hsu
It was a promising plan while it lasted: United Parcel Service Inc. would send its brown-suited army scuttling throughout Europe after paying $6.8 billion to acquire Dutch delivery competitor TNT Express. But then the European Commission, the executive body of the European Union, busted the party, tipping off the two companies that it will prohibit the transaction on antitrust grounds. This after UPS remedied its takeover proposal multiple times since announcing its intention to buy TNT in March.
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BUSINESS
March 5, 2003 | From Bloomberg News
EchoStar Communications Corp. said Tuesday that it had a wider fourth-quarter loss after paying a $600-million breakup fee to Hughes Electronics Corp., while revenue and the number of subscribers rose more than analysts had forecast. EchoStar's Dish system, the second-largest U.S. satellite broadcaster, added 400,000 users in the quarter to end the year with 8.18 million, the company said. Revenue rose 15% to $1.32 billion, beating the $1.
BUSINESS
May 31, 2012 | By Laura Hautala, Los Angeles Times
The future of Pep Boys has been cast in serious doubt after a Los Angeles private-equity firm scuttled a $1-billion deal to buy the struggling auto parts retailer. Gores Group walked away from the acquisition amid worries that Pep Boys' business was deteriorating. The company posted weak first-quarter results this month, when the deal first began to disintegrate. Analysts pointed out that the Gores Group's willingness to pay a $50-million breakup fee without challenging it in court might signal trouble for Pep Boys.
BUSINESS
February 18, 1994 | RICK RABER, BLOOMBERG NEWS SERVICE
Shareholders with a 22% stake in TakeCare Inc., a Northern California health maintenance organization that has become a takeover target, aren't satisfied that the TakeCare board is seeking the highest bid. TakeCare earlier this month canceled a preliminary agreement to be bought by FHP International Corp. in Fountain Valley for about $829 million in cash and securities.
BUSINESS
May 31, 2012 | By Laura Hautala, Los Angeles Times
The future of Pep Boys has been cast in serious doubt after a Los Angeles private-equity firm scuttled a $1-billion deal to buy the struggling auto parts retailer. Gores Group walked away from the acquisition amid worries that Pep Boys' business was deteriorating. The company posted weak first-quarter results this month, when the deal first began to disintegrate. Analysts pointed out that the Gores Group's willingness to pay a $50-million breakup fee without challenging it in court might signal trouble for Pep Boys.
BUSINESS
May 29, 2008 | From Bloomberg News
CKX Inc., owner of the "American Idol" brand, said Wednesday that it had agreed to a revised buyout offer valued at $1.19 billion from a group led by CKX Chief Executive Robert F.X. Sillerman, called 19X Inc. The revisions include an increased breakup fee payable to CKX if the acquisition isn't completed by a new deadline of Oct. 31, CKX said. New York-based CKX will also conduct a new "go shop" period of 45 to 60 days while the company seeks better offers. 19X's offer is for $12 a share.
BUSINESS
July 9, 2009 | TIMES WIRE REPORTS
A bidding war over data storage company Data Domain is over, with EMC emerging as the victor. Data Domain Inc. said it had agreed to be acquired by EMC Corp. for $33.50 a share in cash, about $2.1 billion. The company ended its agreement to be acquired by NetApp Inc. and paid a $57-million breakup fee. NetApp said it had decided not to revise its buyout offer of $30 a share in cash and stock for Data Domain.
BUSINESS
January 14, 2013 | By Tiffany Hsu
It was a promising plan while it lasted: United Parcel Service Inc. would send its brown-suited army scuttling throughout Europe after paying $6.8 billion to acquire Dutch delivery competitor TNT Express. But then the European Commission, the executive body of the European Union, busted the party, tipping off the two companies that it will prohibit the transaction on antitrust grounds. This after UPS remedied its takeover proposal multiple times since announcing its intention to buy TNT in March.
BUSINESS
January 22, 2002 | Bloomberg News
McLeodUSA Inc., a western U.S. local phone and Internet-services company trying to avert bankruptcy, agreed to sell its directory-publishing unit to Britain-based Yell Group Ltd. for $600 million. McLeodUSA, about 20%-owned by Forstmann Little & Co., said it ended a Dec. 3 agreement to sell the unit to the private investment firm for $535 million. Forstmann had agreed not to charge a breakup fee if McLeodUSA found a better offer. Yell is Britain's biggest phone-directory publisher.
BUSINESS
November 25, 2011 | By Tiffany Hsu and Jim Puzzanghera, Los Angeles Times
The end might be near for AT&T Inc.'s proposed $39-billion purchase of T-Mobile USA Inc. Facing growing opposition, telecommunications giant AT&T announced Thursday that it is withdrawing its merger plan from further consideration by the Federal Communications Commission. Instead, it said it would concentrate first on winning approval from the U.S. Justice Department, which sued to stop the purchase. And, in case the deal collapses, the company said it's setting aside $4 billion it would owe in breakup fees to T-Mobile's German owner, Deutsche Telekom.
BUSINESS
August 31, 2011 | By Tiffany Hsu, Los Angeles Times
It may take a breakup to prop up T-Mobile USA Inc. The telecom company could come away with billions of dollars in cash and services if an acquisition bid from rival AT&T Inc. falls through; that's a real possibility after the Justice Department on Wednesday moved to block the deal on antitrust grounds. If the $39-billion deal disintegrates, AT&T would have to pay more than $3 billion in cash to T-Mobile's German parent, Deutsche Telekom, along with airwaves and a roaming agreement worth billions more.
BUSINESS
July 9, 2009 | TIMES WIRE REPORTS
A bidding war over data storage company Data Domain is over, with EMC emerging as the victor. Data Domain Inc. said it had agreed to be acquired by EMC Corp. for $33.50 a share in cash, about $2.1 billion. The company ended its agreement to be acquired by NetApp Inc. and paid a $57-million breakup fee. NetApp said it had decided not to revise its buyout offer of $30 a share in cash and stock for Data Domain.
BUSINESS
May 29, 2008 | From Bloomberg News
CKX Inc., owner of the "American Idol" brand, said Wednesday that it had agreed to a revised buyout offer valued at $1.19 billion from a group led by CKX Chief Executive Robert F.X. Sillerman, called 19X Inc. The revisions include an increased breakup fee payable to CKX if the acquisition isn't completed by a new deadline of Oct. 31, CKX said. New York-based CKX will also conduct a new "go shop" period of 45 to 60 days while the company seeks better offers. 19X's offer is for $12 a share.
BUSINESS
April 8, 2005 | From Bloomberg News
ChevronTexaco Corp.'s $16.4-billion plan to acquire Unocal Corp. includes a $500-million breakup fee if the transaction is canceled. A Securities and Exchange Commission filing by San Ramon, Calif.-based ChevronTexaco disclosed details of the termination fee it would be paid. The deal was announced Monday.
BUSINESS
March 5, 2003 | From Bloomberg News
EchoStar Communications Corp. said Tuesday that it had a wider fourth-quarter loss after paying a $600-million breakup fee to Hughes Electronics Corp., while revenue and the number of subscribers rose more than analysts had forecast. EchoStar's Dish system, the second-largest U.S. satellite broadcaster, added 400,000 users in the quarter to end the year with 8.18 million, the company said. Revenue rose 15% to $1.32 billion, beating the $1.
BUSINESS
August 31, 2011 | By Tiffany Hsu, Los Angeles Times
It may take a breakup to prop up T-Mobile USA Inc. The telecom company could come away with billions of dollars in cash and services if an acquisition bid from rival AT&T Inc. falls through; that's a real possibility after the Justice Department on Wednesday moved to block the deal on antitrust grounds. If the $39-billion deal disintegrates, AT&T would have to pay more than $3 billion in cash to T-Mobile's German parent, Deutsche Telekom, along with airwaves and a roaming agreement worth billions more.
BUSINESS
August 26, 1987 | Associated Press
Reichhold Chemicals Inc. on Tuesday agreed to a sweetened $60-a-share cash buyout offer from Japan's Dainippon Ink & Chemicals Inc., a deal the companies valued at about $600 million. Word of the agreement came hours after Dainippon, which had a hostile $473-million buyout offer pending, and Reichhold disclosed that they were engaged in merger negotiations following months of sometimes sharp exchanges between the two companies. Directors of Reichhold, a White Plains, N.Y.
BUSINESS
November 1, 2002 | Edmund Sanders, Times Staff Writer
WASHINGTON -- EchoStar Communication Corp.'s yearlong bid to take over satellite rival DirecTV appeared all but over Thursday as state and federal antitrust officials -- unimpressed by some last-minute concessions -- sued to block the merger. The decision is likely to set off a series of intense legal maneuvers by the two satellite-TV rivals over $600 million in breakup fees tied to the failed merger.
BUSINESS
July 4, 2002 | JOSEPH MENN, TIMES STAFF WRITER
Some of WorldCom Inc.'s big corporate customers are scrambling to line up alternative suppliers for systems that transmit company data internally and to business partners and customers, but analysts predict that many firms will suffer one way or another from WorldCom's problems. The majority of the largest clients have long-term contracts with WorldCom that set steep penalties for switching, even if WorldCom files for bankruptcy reorganization.
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