M A Outline 1 
I. ACQUISITION METHODS 4
A. Introduction and Motives for Mergers 4
1. Shareholder Protections: 4
2. Appraisal Rights 4
3. Efficient Markets and the Paradox of the Search for Bargains 4
B. Methods of Structuring Business Acquisitions 4
1. Tax & Accounting Issues 4
2. Corporate Deals 5
3. Deals with Shareholders 5
C. Formalities for Statutory Mergers 6
1. Mergers 6
2. Case: Schreiber v. Carney: 6
D. Formalities for Asset Acquisitions 6
1. Asset Purchases – Qualitative Approach & DGCL § 271 6
2. Case: Gimbel v. The Signal Companies: 6
3. Case: Katz v. Bregman 7
E. De Facto Merger Doctrine 7
1. Asset Transactions and De Facto Mergers 7
2. Case: Farris v. Glen Alden Corporation: 7
3. Case: Hariton v. Arco Electronics: 7
F. Triangular Mergers 8
1. Statutes 8
2. Triangular Merger 8
3. Reverse Triangular Merger 8
II. NEGOTIATED TRANSACTION 10
A. Letters of Intent 10
1. The Effect of the Never-Ending Duty on Deal Structure (p.590) 10
2. Case: United Acquisitions Corp. v. Banque Paribas 10
3. Drafting a Letter of Intent 10
B. Purchase Price 11
1. Acquisition Agreement 11
2. Case: O’Tool v. Genmar Holdings: 11
C. Due Diligence 12
1. Due Diligence Process for Buyers 12
2. Case: Escott v. BarChris Construction Corp. 12
D. Material Adverse Changes 12
1. Protection from Surprises – Material Adverse Changes 12
2. Case: John Borders v. KRLB 12
3. Case: Esplanade Oil & Gas v. Templeton 13
E. Best Efforts Clauses 13
1. Case: US Airways v. British Airways 13
F. Representations and Warranties 14
1. Seller’s Remedies – Case: CoEd v. Northeast Utilities 14
III. FIDUCIARY DUTIES IN TAKEOVERS I – RESISTING AN UNWANTED BID 15
A. Takeover Defenses I (Unocal) 15
1. Role of Takeover Defenses 15
2. Case: Unocal v. Mesa Petroleum 15
B. Poison Pills 16
1. Statutes & Logistics: 16
2. Case: Moran v. Household International 16
C. Takeover Defenses II (Blasius) 17
1. Protecting the Board from Proxy Fights: 17
2. Case: Blasius Industries v. Atlas Corp. 17
D. Poison Pills Tactics 18
1. Case: Carmody
A. Introduction and Motives for Mergers 4
1. Shareholder Protections: 4
2. Appraisal Rights 4
3. Efficient Markets and the Paradox of the Search for Bargains 4
B. Methods of Structuring Business Acquisitions 4
1. Tax & Accounting Issues 4
2. Corporate Deals 5
3. Deals with Shareholders 5
C. Formalities for Statutory Mergers 6
1. Mergers 6
2. Case: Schreiber v. Carney: 6
D. Formalities for Asset Acquisitions 6
1. Asset Purchases – Qualitative Approach & DGCL § 271 6
2. Case: Gimbel v. The Signal Companies: 6
3. Case: Katz v. Bregman 7
E. De Facto Merger Doctrine 7
1. Asset Transactions and De Facto Mergers 7
2. Case: Farris v. Glen Alden Corporation: 7
3. Case: Hariton v. Arco Electronics: 7
F. Triangular Mergers 8
1. Statutes 8
2. Triangular Merger 8
3. Reverse Triangular Merger 8
II. NEGOTIATED TRANSACTION 10
A. Letters of Intent 10
1. The Effect of the Never-Ending Duty on Deal Structure (p.590) 10
2. Case: United Acquisitions Corp. v. Banque Paribas 10
3. Drafting a Letter of Intent 10
B. Purchase Price 11
1. Acquisition Agreement 11
2. Case: O’Tool v. Genmar Holdings: 11
C. Due Diligence 12
1. Due Diligence Process for Buyers 12
2. Case: Escott v. BarChris Construction Corp. 12
D. Material Adverse Changes 12
1. Protection from Surprises – Material Adverse Changes 12
2. Case: John Borders v. KRLB 12
3. Case: Esplanade Oil & Gas v. Templeton 13
E. Best Efforts Clauses 13
1. Case: US Airways v. British Airways 13
F. Representations and Warranties 14
1. Seller’s Remedies – Case: CoEd v. Northeast Utilities 14
III. FIDUCIARY DUTIES IN TAKEOVERS I – RESISTING AN UNWANTED BID 15
A. Takeover Defenses I (Unocal) 15
1. Role of Takeover Defenses 15
2. Case: Unocal v. Mesa Petroleum 15
B. Poison Pills 16
1. Statutes & Logistics: 16
2. Case: Moran v. Household International 16
C. Takeover Defenses II (Blasius) 17
1. Protecting the Board from Proxy Fights: 17
2. Case: Blasius Industries v. Atlas Corp. 17
D. Poison Pills Tactics 18
1. Case: Carmody