Template:M summ Equity Derivatives 12.1(b): Difference between revisions

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===Section {{eqderivprov|12.1(b)}} {{eqderivprov|Merger Event}}===
In summary, this breaks down into:
In summary, this breaks down into:
*'''Transfer''': an irrevocable commitment to transfer all the {{eqderivprov|Shares}} to another entity;
*'''Transfer''': an irrevocable commitment to transfer all the {{eqderivprov|Shares}} to another entity;
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Where the {{eqderivprov|Merger Date}} is before the final settlement date.
Where the {{eqderivprov|Merger Date}} is before the final settlement date.


Note that, by contrast, the "{{eqderivprov|Tender Offer}}" {{eqderivprov|Extraordinary Event}} is triggered by greater than 10% but less than 100% of the outstanding voting shares of the {{eqderivprov|Issuer}}. So the two do not in fact overlap.
Note that, by contrast, the “{{eqderivprov|Tender Offer}}” {{eqderivprov|Extraordinary Event}} is triggered by greater than 10% but less than 100% of the outstanding voting shares of the {{eqderivprov|Issuer}}. So the two do not in fact overlap.
===Section 12.1(c) Merger Date===
For what its worth here is the text of Section 12.1(c)
{{subtable|{{2002 ISDA Equity Derivatives Definitions 12.1(b)}}}}
and in nutshell:
{{subtable|{{Nutshell Equity Derivatives 12.1(b)}}}}
===A quick primer on the differences [[merger]], [[consolidation]] and [[share exchange]]===
Basically, they are ''all'' ways of combining businesses. The difference is identity of the resulting entity.
 
{{Consolidation amalgamation merger capsule}}

Latest revision as of 19:49, 3 August 2023

In summary, this breaks down into:

  • Transfer: an irrevocable commitment to transfer all the Shares to another entity;
  • Merger: merger or binding share exchange of the Issuer with or into another entity where the other entity survives;
  • 100% Takeover offer: takeover or tender offer for 100% of outstanding Shares by any entity;
  • Reverse Merger: merger binding share exchange of the Issuer with or into another entity where the Issuer survives but represents less than 50% of the resulting entity;

Where the Merger Date is before the final settlement date.

Note that, by contrast, the “Tender Offer” Extraordinary Event is triggered by greater than 10% but less than 100% of the outstanding voting shares of the Issuer. So the two do not in fact overlap.

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