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: Delaware Business Litigation ReportCourt of Chancery Permits Reasonable Time To Invoke MAC Clause
By Morris James LLP
Henkel Corp. v. Innovative Brands Holdings LLC, C.A. 3663-VCN (Del. Ch. Aug. 26, 2008)
Merger agreements frequently permit a merger to be terminated in the event of a materially adverse change to the business of the company to be acquired. When the right to invoke such a MAC clause is not set by the agreement, this decision holds that it must be invoked within a reasonable time. What is reasonable depends on the circumstances.
Full post as published by Delaware Business Litigation Report on August 26, 2008 (boomark / email).
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