Proposed Amendment to Delaware Merger Law May Result in Increased Pressure for Private Equity-Sponsors to Use Two-Step Merger Structures in Going-Private Transactions
The Delaware State Bar Association has proposed an amendment to the Delaware General Corporation Law that may significantly change how acquirors, including private equity sponsors, use tender offers to acquire public companies. It is expected that the proposed amendment will be adopted by this summer and become effective August 1, 2013.