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The Validity Of Deal Protection Devices Under Anglo-American Law, Wai Yee Wan

Research Collection Yong Pung How School Of Law

This paper analyzes deal protection devices, specifically termination fees and lockup agreements, that are entered into by publicly listed target companies in favor of the bidders, under Anglo-American law. U.S. (specifically Delaware) and U.K. law and regulation differ markedly in the regulation of these devices. Delaware law generally gives more leeway for the target board to enter into deal protection devices. The U.K. regime is much more shareholder-centric and severely restricts most types of deal protections. This paper examines the differences and argues that the U.K. regime is the result of the strong influence of institutional share ownership. In contrast, …