Archive for December 5th, 2008
Tip of the Week: What Happens When Non-US Companies are Involved in a Reverse Merger?
By David Feldman at 5 December, 2008, 4:54 am
Some transactions are not structured as mergers but also achieve avoidance of shareholder approval. For example, most reverse mergers involving foreign companies, which generally cannot engage in direct mergers with U.S. entities, involve a simple exchange of shares. The shell and the private company’s shareholders agree that the private company’s shareholders will give up their shares of that company in exchange for shares of the shell. The shell, if it has sufficient shares available, approves that issuance through its board. Again, no shell shareholder approval is required.
Read More >>What Will December Look Like for the Travel Industry?
By David Feldman at 5 December, 2008, 4:53 am
Many companies will be hit hard this Holiday season due to the economy, however the travel industry could potentially affected most dramatically. Airlines and hotel chains rely on strong December revenues to augment their end-of-year financials. However with the current market environment and increased investor uncertainty, travel and transportation usage appears to be down compared to prior years.
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