Business Combination laws

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Business Combination laws

These laws impose a moratorium on certain kinds of transactions (e.g., asset sales, mergers) between a large shareholder and the firm for a period usually ranging between three and five years after the shareholder's stake passes a pre-specified (minority) threshold. These laws are in place in more than half the U.S. states.

Business Combination Laws

Laws in most U.S. states limiting the transactions between publicly-traded companies and their most prominent minority shareholders. Generally speaking, a company may not merge or conduct other major transactions with a company owned by a minority shareholder for a certain number of years after the minority shareholder takes on a certain, defined percentage of the company's equity.
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In light of the attractive terms of our offer, we request that the Company's Board of Directors take appropriate actions so that the Iowa Business Combination Law is rendered inapplicable to our proposed merger.
Western's proposal must satisfy the Missouri Business Combination law, which requires your board's approval.
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