breakup fee

Breakup Fee

In some agreements, a fee that a seller must pay a buyer if the seller decides not to close the deal. The seller usually does this if it receives a better bid from another buyer after it has already entered negotiations. The breakup fee exists to compensate the first buyer, who has no control over the change in situation. It is usually 1-3% of the sale price. See also: Topper fee.

breakup fee

A provision in a takeover agreement that requires a firm to pay the investment banker a large sum of money if another firm takes over the target company. A breakup fee tends to discourage other firms from making bids for the target. See also topper fee.
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discount on any breakup fee due to Dell if EMC were to pull out of the
Media reports said EMC had asked for a special rider to be included in the merger which would allow it to solicit bids from other parties and pay a discounted breakup fee for Dell, if a deal with another company came about.
The decision often comes down to either paying a breakup fee or agreeing to a substantial monetary settlement, but in this case, the clients decided to fight and hit back hard, in order to vindicate their position," explained Uri Litvak, who served as lead trial counsel.
The recent breakup fee from AbbVie contributed to the purchase, giving investors' confidence behind the firm's plans for growth.
He also wants Judge Gloria Burns to deduct a $3 million breakup fee he was originally promised because Revel is keeping Brookfield's $11 million deposit.
The transaction covers a C$90 million breakup fee payable under certain circumstances by Celtic Exploration Ltd.
The report, issued by the inspector general for the Federal Housing Finance Agency (FHFA), concludes that Fannie Mae is probably contractually required to pay a breakup fee in order to shift troubled loans to companies more skilled at working with borrowers than Fannie Mae is -- and to companies more likely to reduce loan losses for the government-backed mortgage giant and taxpayers than it is as well.
I don't think they're in discussions to settle," said Bert Foer, head of the American Antitrust Institute who added that AT&T may just be renegotiating the breakup fee it agreed to pay T-Mobile USA in the event of a regulatory block of the deal.
will have to pay a $12 million breakup fee to S1, according to their earlier agreement.
That offer, which entitles the Internet search company to a breakup fee of $25 million plus expenses, was exceeded by Intel when the auction started and then followed by more offers, some in writing, some made orally, Schweitzer said.
with a $39 billion offer for T-Mobile USA after agreeing to pay mostly cash and a higher-than-average breakup fee, said three people with knowledge of the matter.
If the CF offer is accepted, Yara is entitled to a $123 million breakup fee.