find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Corporate Lawyer
Category: Generalists - In House | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· 12 months fixed term opportunity
View details
Property lawyer - Melbourne
Category: Property Law | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Impressive client list, national firm · Well-led and high-performing team
View details
Bear hugs on the rise

Bear hugs on the rise

Australia’s mergers and acquisitions market will be dominated by joint bids and bear hugs in 2012, according to a new report released by Clayton Utz.

Australia’s mergers and acquisitions market will be dominated by joint bids and bear hugs in 2012, according to a new report released by Clayton Utz.

According to The Real Deal 2012 - which looks into public M&A deal structures, the tactics adopted by targets and acquirers, and the developments shaping the future of Australia’s M&A market - uncertain market conditions are continuing to have a strong influence on bid strategies and the way deals are structured, resulting in an increase in joint bids and bear hugs over the last 12 months.

Key contributors to the analysis, Clayton Utz corporate/M&A partners Karen Evans-Cullen and Jonathan Algar, said the findings of the report uncovered both commercial and technical legal trends in the approach and structure of Australian M&A transactions.

“For example, joint bids, which have not featured prominently in the past, became increasingly popular in 2011 and were used in some of the largest deals of the year,” said Evans-Cullen. “We expect this trend to continue as bidders seek certainty in an uncertain market, and pool their resources to secure strategic assets.”

According to Algar, the number of bids that started with bear hug proposals was also high.
“2011 has shown that bear hug proposals have been a successful tactic for pressuring target boards to engage with a bidder who would not have otherwise been welcomed,” said Algar. “We expect bear hugs will continue to be used in place of the hostile takeover. It is also a tactic which will be used increasingly by private equity.”
 

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Bear hugs on the rise
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Warning
Aug 23 2017
NT Law Society sounds alarm on mandatory sentencing
The Law Society Northern Territory has issued a warning over mandatory sentencing, saying it hasn’...
Unite
Aug 22 2017
Professionals unite in support of marriage equality
The presidents of representative bodies for solicitors, barristers and doctors in NSW have come toge...
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by The way we do business, where we work, how we engage with workers, even how we take a...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...