TERMIUM Plus®

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REVERSE TERMINATION FEE [1 record]

Record 1 2009-07-06

English

Subject field(s)
  • Commercial Law
  • Amalgamation and Partnerships (Finance)
CONT

Reverse break fees are a relatively recent development in Canada. A reverse break fee is intended to compensate the target with a cash payment in the event that the proposed transaction is terminated by the target as a result of the acquirer's failure to perform.

Key term(s)
  • reverse breakup fee
  • reverse bustup fee

French

Domaine(s)
  • Droit commercial
  • Fusion, absorption et coparticipation (Finances)
DEF

Compensation monétaire versée par l'acquéreur éventuel à la société visée par un regroupement d'entreprises afin de dédommager cette dernière en cas d'échec de la transaction projetée.

CONT

Dans le cadre de l'entente définitive de fusion entre Whirlpool Corporation et Maytag Corporation, Whirlpool a accepté de verser à Maytag, dans l'éventualité peu probable que les organismes de réglementation n'acceptent pas l'opération, une «indemnité de rupture inversée» de 120 millions de dollars.

Spanish

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