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3 Kravitz riffs on Connecticut law
Recapitalizations After parsing a state statute on voting rights in mergers, a fed-
eral judge approved Kaman Corp.’s proposed recapitalization
4 A titanic problem in the making?
Securities law Lawyers worry that a recent SEC report portends a higher level of
scrutiny for statements made in merger agreements
5 A new streamlined baby for the FTC and DOJ?
Antitrust With Ernest Hollings retired, the DOJ and FTC may finally be free to
streamline the merger review process
6 The top 10 deals: June 16–Aug. 15
The sales of MBNA and Unocal top the summer months
November 2005
Recapitalizations article as seen in the November 2005 issue of Corporate Control Alert
s e c u r i t i e s l aw
Lawyers worry that a recent SEC report curacy. This practice is justified, law-
yers say, because it allows companies
portends a higher level of scrutiny considering a deal to conduct thorough
due diligence on one another without
for statements made in merger agreements worrying that even negligible issues
will be made public. As Spatt noted at
Tulane, an issuer must publicly disclose
for the FTC and DOJ? war in Iraq and budget battles, but re-
gardless of the attention the issue gets
from lawmakers, the agencies will have
discretion to implement some AMC
Timothy Muris and Charles James vember that they stand a good chance recommendations on their own.
learned a harsh lesson in the ways of at least prodding the agencies to Sims, now a partner with Jones Day,
of Washington in 2002 when a U.S. reduce the time and cost of merger suggested the AMC call for establishing
senator killed what many antitrust reviews. common databases of economic and in-
lawyers saw as a sensible plan for The panel was initially viewed as lit- dustry statistics that the agencies can
streamlining federal merger reviews. tle more than a pet project of Sensen- use when analyzing the effect of a merg-
Only two months after Muris, then brenner, the House Judiciary Commit- er, which would enable an enforcer to
chairman of the Federal Trade Com- tee chairman. The initial legislation base decisions on identical assumptions
mission, and James, the Department creating the commission failed even about a particular industry.
of Justice’s assistant attorney general to include funds to get it started. The He also urged the AMC to establish
for antitrust, worked out a deal for money finally arrived in time for the a joint office of “clearance special-
dividing responsibility for merger re- commission to begin hearings in 2004, ists” with no clear allegiance to either
views along industry lines, they were but early cynicism has persisted. agency that would be charged with
forced to scuttle it under intense “Given the environment we’re in, deciding quickly which agency would
pressure from Sen. Ernest Hollings I’m not at all convinced that future review a merger. “It doesn’t make a
of South Carolina, then the ranking heads of the two agencies will en- whole lot of difference who does a
Democrat on the Commerce Com- gage in overall clearance reform,” said deal,” Sims told the AMC gathering.
mittee, the primary congressional Muris, now a law professor at George “But it does make a lot of difference
overseer of the FTC. Mason University in Fairfax, Va., at a that they get started.”
The fallout from the debacle con- Nov. 3 AMC hearing. The most recent clearance fight
vinced them and their successors that AMC chairwoman Deborah Gar- erupted when Maytag Corp. accepted
antitrust reform was radioactive. Partly za, a partner in Fried, Frank, Harris, a buyout offer from Whirlpool Corp.
in reaction to the uproar, Rep. James Shriver & Jacobson LLP’s Washing- The Justice Department won claim
Sensenbrenner, R-Wis., that same year ton office, says the mood in Congress to the deal with only a week to go in
pushed Congress to create the Anti- has shifted. (It helps that Hollings the 30-day waiting period the Hart-
trust Modernization Commission to has retired.) “In my discussions with Scott-Rodino Act requires. The tardy
clean up longstanding shortcomings Capitol Hill staff, we’ve been assured decision assured the companies would
in merger review practice, as well as to there’s no need to obsess over what have to comply with a second request
adapt DOJ and FTC competition en- happened last time. My sense is we for information rather than getting
forcement for the Internet age. Many shouldn’t be defeatist about it.” She the go-ahead to merge after the initial
doubted the new commission would says the commission will continue HSR waiting period.
even get off the ground, much less re- hearings through January with a final Lamenting the 2002 agreement’s de-
vamp antitrust policy. report expected in early spring 2007, mise, Arnold & Porter LLP antitrust
But more than a year into a series although the commission may weigh partner Michael Sohn says that in the
of public hearings on how to improve in with Congress on specific topics short time the Muris-James truce was in
the merger review process, the mood before then. place, the time to clear a merger review
is changing. Even Joe Sims, a veteran Leading the list of desired changes is to an agency dropped from an average
antitrust lawyer and former Justice streamlining the so-called “clearance of 15 days to 1.5 days. n
Department deputy assistant attorney process” for deciding whether the DOJ
general, told AMC members in No- or the FTC reviews a particular deal. by Bill McConnell
December 2005
Antitrust article as seen in the December 2005 issue of Corporate Control Alert
the top 10 deals Investment advisers’
Rank Target Legal advisers Investment advisers counsel
3 PacifiCare
Health Systems Inc.
Skadden, Arps, Slate, Meagher & Flom
LLP (Paul Schnell, Neil Stronski)
MTS Health Partners
Morgan Stanley
Latham & Watkins
(Charles Ruck)
Schulte Roth & Zabel LLP
4 Cablevision Systems
Corp.
Willkie Farr & Gallagher LLP (Mario Cuomo,
Joseph Baio, Michael Schwartz, Daniel Rubino)
8 Reebok International
Ltd.
Ropes & Gray LLP
Latham & Watkins LLP
Credit Suisse First Boston Dewey Ballantine LLP
(Morton Pierce, M. Adel Aslani-Far)
(antitrust, Dan Wall, Tom Rosch, Andreas Weitbrecht)
UnitedHealth Group Inc. Weil, Gotshal & Manges Goldman, Sachs & Co. 8,110
(Raymond Gietz, Thomas Roberts) J.P. Morgan Chase & Co. Cleary Gottlieb
Dorsey & Whitney (Jonathan Abram) Bank of America Securities
Dolan family Debevoise & Plimpton LLP Bank of America Securities Dewey Ballantine LLP 7,900
(20% shareholder) (Rick Bohn, David Brittenham) (Stephen Ketchum, Thomas Whayne) (Morton Pierce, Jack Bodner)
Potter Anderson & Corroon Merrill Lynch & Co. Shearman & Sterling
(Donald J. Wolfe Jr., Michael Tumas) (Christa D’Alimonte)
Teva Pharmaceuticals Willkie Farr & Gallagher LLP Lehman Brothers Inc. Simpson Thacher & 7,400
Industries Ltd. (Peter Jakes, Jeffrey Hochman) (Harvey Kruger, David Brand, Len Rosen) Bartlett (William Curbow)
Tulchinsky-Stern & Co. Credit Suisse First Boston Dewey Ballantine LLP
(Menachem Tulchinsky, Yaacov Michlin) (Francois Maisonrouge, Charlie Attlan) (Morton Pierrce, Jack Bodner)
Sonnenschein Nath & Rosenthal LLP
(Ira Schreger, T. Redd Stephens. Marci Levine)
VNU NV Simpson Thacher & Bartlett LLP Credit Suisse First Boston Shearman & Sterling 6,700
(John Finley, Peter Malloy, Kenneth Edgar) (John Trousdale, David Weil, Jeff Lipkin) LLP (John Madden)
De Brauw Blackstone Westbroek NV Evercore Partners (Roger Altman)
(Arne Grimme, Jaap Winter) ABN Amro (Jan de Ruiter) Davis Polk &
Deutsche Bank (Geoffrey Austin) Wardwell
Kinder Morgan Inc. Bracewell & Giuliani UBS 5,600
(Gregory Bopp, W. Cleland Dade, Gary Orloff) (Michael Jamieson)
Blake Cassels & Graydon LLP
(Mungo Hardwicke-Brown, Brock Gibson)
Adidas-Salomon AG Simpson Thacher & Bartlett LLP Merrill Lynch & Co. Skadden, Arps, 3,800
(Casey Cogut, William Dougherty) Slate, Meagher &
Beiten Burkhardt Flom LLP
Eversheds LLP (Howard Ellin)
Wilmer Cutler Pickering Hale and
Dorr LLP
Legg Mason Inc. Shearman & Sterling LLP Goldman, Sachs & Co. Simpson Thacher & 3,700
(Brokerage unit) (John Marzulli, Barry Barbash) (Donald Truesdale, Christopher Spofford) Bartlett (Lee Meyerson)
Morgan Lewis & Bockius LLP
(Steven Stone, Robert Robison, Stephen Cohen)
A.P. Møller-Maersk, Allen & Overy LLP Citigroup 3,500
Centrica plc (Tim Shilling) (Peter Kjaer, Jim Peterkin)
August/September 2005
c o r p o r at e g o v e r n a n c e
The new pan-European stock corporation may make the move following its ¤11.2 bil-
lion buy of the 49.9% of Belgian divi-
appeal to issuers primarily as a way of easing sion Electrabel SA it doesn’t own.
Sweden’s Nordea Bank AB in June
cross-border deals announced a transition to an SE after
operating as a holding company for four
banking groups in Scandinavia. Austri-
Shareholder target: DLJ Merchant Banking Partners Target: Advanced Neuromodulation Systems Inc.
Outside counsel: Weil, Gotshal & Manges LLP Investment adviser: Piper Jaffray & Co.
Warner, Douglas Outside counsel: Baker Botts LLP
Silberberg, Marc Cialone II, Joseph
McDermett Jr., Don
Acquirer: Kohlberg Kravis Roberts & Co. Monk, David
Investment adviser: J.P. Morgan Chase & Co. Berry, J. Patrick
Outside counsel: Simpson Thacher & Bartlett LLP Kennerly, Christopher
Cogut, Charles Marcus, Stephen
Rodgers, Sean Raborn, James
Todrys, Steven
Acquirer: St. Jude Medical Inc.
Brown, Alvin
Investment adviser: Banc of America Securities LLC
Information agent: MacKenzie Partners Inc. Outside counsel: Gibson, Dunn & Crutcher LLP
PR firm: Kekst and Co. Barbeau, Joseph
Announcement date: 10/11/05 Announcement date: 10/16/05
*Accellent is owned by KRG Capital Partners LLC, DLJ Merchant Banking Partners, and
management.
*As part of the transaction, members of Accellent management will partner with KKR by Agilent Technologies
retaining a significant equity stake in the company. —storage semiconductor division
$425 million (cash/stock acquisition)
deal description:
ACR Logistics PMC-Sierra Inc. has agreed to purchase the storage semiconductor division
$592 million (private acquisition) of Agilent Technologies Inc.’s semiconductor product group for $425 million
in cash. The PMC-Sierra $425 million deal hinges on the larger transaction
deal description: between Kohlberg Kravis Roberts & Co. and Silver Lake Partners to buy the
Kuehne + Nagel International AG said that it has agreed to buy ACR Logis- Agilent semiconductor product business for $2.66 billion.
tics from buyout firm Platinum Equity LLC.
Target: Agilent Technologies
Target: ACR Logistics —storage semiconductor division
Shareholder target: Platinum Equity LLC Shareholder target: Agilent Technologies Inc.
Investment adviser: Lehman Brothers Inc.
Leckert, Steffen Shareholder target: Kohlberg Kravis Roberts & Co.
December 2005
The lineup as seen in the December 2005 issue of Corporate Control Alert
Shareholder target: Silver Lake Partners LP AMLI Residential Properties Trust
PR firm: Citigate Sard Verbinnen $2.1 billion (cash/stock acquisition)
Acquirer: PMC-Sierra Inc. deal description:
Outside counsel: Wilson Sonsini Goodrich & Rosati Investment bank Morgan Stanley said it agreed to buy Chicago-based REIT
Wolff, Neil AMLI Residential Properties Trust in an all cash deal valued at about $2.1
Ishii, Robert billion.
Company Name Headquarters INC Adopt. Date Amend. Date Price/Thresh Law Firm Bank
U. S. incorporated companies
Aclara Biosciences Inc. Mountain View, Calif. Del. 3/16/2001 10/18/2004 $40.50/20%
Amendment exempts Perry Corp. up to 25%.
American Medical Green Bay, Wis. Wis. 8/9/2001 9/15/2004 $30/16% Skadden Arps Slate
Security Group Inc. Meagher & Flom LLP;
Quarles & Brady LLP
Amendment exempts PacifiCare Health Systems Inc. in connection with its agreement to acquire the company.
Archstone-Smith Trust Englewood, Colo. Md. 8/31/2001 9/20/2004 $75/15% Mayer Brown Rowe & Maw
Amendment accelerates expiration date to 10.1.04 from 8.31.11.
Assisted Living Concepts Inc. Dallas Nev. 10/1/2004 11/4/2004 $60/20% Andrews Kurth LLP
Amendment exempts Extendicare Health Services Inc. in connection with its agreement to acquire the company.
Source: www.SharkRepellent.net, © 2004/2005 TrueCourse Inc., all rights reserved; Corporate Control Alert
March 2005 11
Poison Pill chart as seen in the March 2005 issue of Corporate Control Alert
Company Name Headquarters INC Adopt. Date Amend. Date Price/Thresh Law Firm Bank
Assisted Living Concepts Inc. Dallas Nev. 10/1/2004 $60/20% Andrews Kurth LLP
Includes exchange option.
Avant Immunotherapeutics Inc. Needham, Mass. Del. 11/5/2004 $35/15% Goodwin Procter LLP Adams Harkness Inc
Original plan adopted in 1994; new plan includes exchange option.
Bill Barrett Corp. Denver Del. 10/8/2004 $150/15% Akin Gump Strauss
Hauer & Feld LLP
Includes exchange option.
Bioenvision Inc. New York Del. 11/17/2004 $70/15% Paul Hastings Janofsky J.P. Morgan
& Walker LLP
Includes exchange option.
Bioject Medical Technologies Inc. Bedminster, N.J. Ore. 6/13/2002 11/15/2004 $50/15%
Amendment exempts LOF Partners, LLC up to 19.99%.
Callidus Software Inc. San Jose, Calif. Del. 8/31/2004 $23/15% Davis Polk & Wardwell
Includes exchange option.
CancerVax Corp. Carlsbad, Calif. Del. 11/3/2004 $95/15% Latham & Watkins
Includes exchange option.
Catalytica Energy Systems Inc. Gilbert, Ariz. Del. 1/24/2002 11/22/2004 $45/20% Wilson Sonsini
Goodrich & Rosati
Amendment increases flip-in to 20% from 15%.
Advisers in deals announced between Jan. 1, 2005 and June 30, 2005 with a value of $100 million or more
Party represented
Total Target Acquirer/ Merger Other Special
deals bidder partner
LAW FIRMS
1 Skadden, Arps, Slate, Meagher & Flom LLP 36 14 20 0 2 0
2 Weil, Gotshal & Manges LLP 33 13 16 0 0 5
3 Wachtell, Lipton, Rosen & Katz 29 18 11 0 0 0
4 Latham & Watkins LLP 26 11 13 0 0 2
5 Simpson Thacher & Bartlett LLP 23 8 14 0 1 0
6 Jones Day 22 4 11 0 0 7
7 Gibson, Dunn & Crutcher LLP 19 7 10 0 2 0
8 Wilson Sonsini Goodrich & Rosati PC 18 9 9 0 0 0
9 Kirkland & Ellis LLP 17 7 11 0 0 0
9 Davis Polk & Wardwell 17 6 10 0 1 0
11 Sullivan & Cromwell LLP 16 3 13 0 0 0
12 Willkie Farr & Gallagher LLP 15 7 7 0 2 0
12 Shearman & Sterling LLP 15 6 8 0 0 1
14 O’Melveny & Myers LLP 14 7 6 0 1 0
14 Ropes & Gray 14 5 9 0 0 0
14 Cleary Gottlieb Steen & Hamilton LLP 14 0 9 0 0 5
17 Mayer, Brown, Rowe & Maw 13 6 5 0 1 1
17 Vinson & Elkins LLP 13 6 7 0 0 0
17 Paul, Weiss, Rifkind, Wharton & Garrison LLP 13 7 6 0 0 0
17 Cravath, Swaine & Moore LLP 13 5 7 0 1 0
21 Fried, Frank, Harris, Shriver & Jacobson LLP 12 4 8 0 0 0
22 Dechert LLP 11 5 6 0 0 0
23 Wilmer Cutler Pickering Hale and Dorr LLP 10 4 5 0 0 1
24 Fenwick & West LLP 9 6 3 0 0 0
24 Freshfields Bruckhaus Deringer 9 5 4 0 0 0
26 Alston & Bird LLP 8 5 3 0 0 0
26 Goodwin Procter LLP 8 2 6 0 0 0
26 Cooley Godward LLP 8 4 4 0 0 0
26 Clifford Chance LLP 8 2 6 0 0 0
26 Linklaters 8 5 3 0 0 0
August/September 2005 13
2005 rankings chart as seen in the August/September 2005 issue of Corporate Control Alert
Party represented
Total Target Acquirer/ Merger Other Special
deals bidder partner
INVESTMENT ADVISERS
1 Goldman, Sachs & Co. 76 38 39 0 0
2 Morgan Stanley 52 25 24 0 3
3 UBS Investment Bank 50 25 23 0 2
4 Credit Suisse First Boston 49 28 21 0 0
5 Lehman Brothers Inc. 42 21 18 0 3
6 Merrill Lynch & Co. 41 20 19 0 2
7 Citigroup Global Markets Inc. 40 15 17 0 1
8 J.P. Morgan Chase & Co. 36 16 20 0 0
9 Banc of America Securities LLC 29 8 21 0 0
10 Deutsche Bank AG 27 7 20 0 0
11 Lazard 25 15 9 0 1
12 Bear, Stearns & Co. 21 11 10 0 0
13 CIBC World Markets 10 5 5 0 0
13 Wachovia Securities Corp. 10 4 6 0 0
15 Houlihan Lokey Howard & Zukin 9 5 4 0 0
16 Piper Jaffray & Co. 8 5 3 0 0
16 Rothschild 8 3 4 0 1
18 William Blair & Co. LLC 7 5 2 0 0
19 SG Cowen Securities Corp. 6 5 1 0 0
19 Allen & Co. Inc. 6 6 0 0 0
21 Sandler O’Neill & Partners LP 5 4 1 0 0
21 ABN Amro Bank NV 5 3 2 0 0
21 Blackstone Group 5 2 3 0 0
21 Thomas Weisel Partners LLC 5 2 3 0 0
25 Greenhill & Co. 4 3 1 0 0
25 Evercore Partners 4 2 1 0 1
25 Keefe, Bruyette & Woods Inc. 4 0 4 0 0
25 N.M. Rothschild & Sons Ltd. 4 1 3 0 0
25 Stephens Inc. 4 1 3 0 0
PR FIRMS
1 Kekst and Co. 42 18 24 0 0
2 Citigate Sard Verbinnen 25 9 16 0 0
3 Abernathy MacGregor Group Inc. 20 7 13 0 0
4 Joele Frank, Wilkinson Brimmer Katcher 18 11 7 0 0
5 Brunswick Group 12 2 10 0 0
6 Owen Blicksilver Public Relations Inc. 7 2 5 0 0
7 Edelman 6 4 2 0 0
8 Financial Dynamics 5 3 2 0 0
9 Sloane & Co. 4 2 2 0 0
10 Fleishman-Hillard Inc. 2 0 2 0 0
footnotes
* Special counsel includes such roles on a deal as antitrust, FCC, tax and other noncorporate counseling.