• by Staff Report , August 6, 2013

While the Publicom merger is expected to close by the end of this year or early next, the parties actually gave themselves up to 18 months (under certain circumstances) to get the deal done, according to the merger contract. If it takes that long that would be early 2015. But of course both sides are obligated to exercise good faith efforts to get the deal done. And if either side is tempted by a third party alternative offer it could be costly—there’s a $500 million break-up fee. Being a merger of equals, it applies to both sides. And no checks or IOUs accepted. Instead a wire transfer for the whole amount is due the day the fee is triggered.  Plus interest (prime rate) and court costs if either party has to sue to get the other to pay up.  But the two sides can also call the whole thing off without penalty if they mutually decide upon reflection that it’s not such a hot idea after all. And if that happens, well then the earned media will really start to flow.