Archives: Securities

February 14, 2005

Happy V-Day from Law & Entrepreneurship News

"A moving party who grants notice to cure should allow a meaningful cure period. Short turnaround ultimatums are discouraged for the same reasons that the "Saturday Night Special" has been banned in securities trading. Exploding cure periods are considered coercive because they force parties to work under the pressure of an arbitrary deadline without the benefit of full information."86

  --The above application of securities law coming from The Restatement of Love, 104 Yale L.J. 707 (1994). 

See more on the Saturday Night Special below...

"FN 86. The Williams Act, enacted in 1968, did away with Saturday Night Specials as part of an attempt to protect shareholders of corporations targeted in takeover bids. The Act created a minimum time period in which shareholders could evaluate offers before deciding whether to accept. See Robert A. Prentice, The Role of States in Tender Offers: An Analysis of CTS, 1988 COLUM. BUS. L. REV. 1, 43 n.241 ("Before enactment of the Williams Act's minimum hold-open period, a bidder could `blitzkrieg' a target's shareholders by giving them only a short period of time to decide whether to tender.")."

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