On September 15, 2014, Allergan made a concession in its contentious battle to thwart Valeant Pharmaceuticals and hedge fund Pershing Square Capital Management in their joint attempt at a $53 billion takeover of Allergan. 1 The concession was to agree to the special meeting called by Pershing Square with the hope of voting out a…
Category: Blog Articles
Principal-Agent Issues in Going Private Transactions
“Going private,” as it has been called, describes a process by which a public company becomes private. Though there are several different means of accomplishing such a transition, this post will cover that which private equity firms execute, by buying out a majority of the company’s shares to effectively take control of that public company….
Fantasy Sports: Investment Gold Mine or Legal Minefield
It is estimated that over forty-one million people have played fantasy sports in the United States or Canada this year.1 In addition to nearly nine hours per week,2 these players are spending vast sums of money on this increasingly popular pastime. It is estimated that as much as eleven billion dollars will flow through the…
The Murky Line between a Pyramid Scheme and a Multilevel Marketing Scheme
The classic definition of a pyramid scheme is a business model which attempts to make money solely by recruiting new participants into the program. Pyramid schemes usually promise astronomical returns within a short period of time. Members are generally required to hand over money at the initial sign-up stage. In return, members receive the opportunity…
Despite Outstanding Growth Prospects, Alibaba’s IPO Fraught with Risk
Although few retail investors in the United States have even heard of Chinese e-commerce behemoth Alibaba, anticipation on Wall Street this week for the company’s forthcoming I.P.O. is palpable.1 Touted by many as a uniquely positioned hybrid of eBay, Amazon, and Google, the company announced its plans earlier this year to go public in New…
Burger King-Tim Hortons Merger: Another Corporate Desertion or Good Business Strategy?
In late August, Burger King announced that it intended to acquire the Canadian coffee and donut chain Tim Hortons for $11 billion.1 The combined company will be headquartered in Canada.2 By purchasing Tim Hortons, Burger King has faced criticism that it is yet another U.S. corporation deserting its country for tax advantages.3 In the last…
Tesla Moves Forward with its Battery Plant, Despite Continued Resistance from States
Tesla, one of the most innovative car companies the United States has ever seen, has for years struggled to acquire the right to sell its cars directly to consumers; however, notwithstanding its staunch opposition, Tesla is in the process of finalizing a deal that would see Nevada as the host state for its new battery…
Two Ways to Corner the Market: The Battle of Beer
There is a battle being played out in Ann Arbor and throughout the rest of Michigan. No, it has nothing to do with the Michigan Wolverines lackluster start to the football season. This battle is about beer! To be more specific, this battle is about the rapid growth of the craft beer industry in North…
Top Private Equity Firms Settle Lawsuit
Private equity firms usually have money on the mind. They aim to make money for their investors by buying companies and selling them at a profit, while pocketing management and performance fees for themselves. In the competitive world of Wall Street, performance is critical – but for some of the biggest private equity funds in…
Online Gambling in the United States
Gambling, and especially online gaming, in the United States has a long and complicated past. Recently, three states, Nevada, Delaware, and New Jersey, have passed legislation allowing for online gambling within their state borders. This blog post reviews a history of online gaming in the United States, examines recent areas of legalization for online…