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Ban All M&A Until Vaccine Legislation


wescobrk
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Senator Warren and Congresswoman AOC are trying to push legislation to ban all M&A until pandemic is over.

M&A is already down over 33%. The FTC is still reviewing each M&A case. The FTC commissioner commented that is black and white thinking and would actually be more difficult for some small companies.

With poison pills so easy to invoke, small companies aren't forced to be sold unless the shareholders vote on it. Also, if a company is struggling and may not make it without an acquisition, this would harm companies.

I don't even understand how Warren and AOC would benefit from this politically as this seems to be difficult to describe the specifics with voters.

 

Anyone on the board believe this is a good idea and can explain why it should be law until a vaccine?

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What a dumb idea.  If the social distancing strategies are held in place for much longer, the market is full of zombie companies.  Nearly every travel company, restaurant company, and entertainment company is basically a dead-man walking.  There aren't many good options available to the management of those outfits, but bankruptcy, re-caps and M&A are basically three of the big tools.  And now the "tools" in Washington want to eliminate one of those options?

 

 

SJ

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"Small businesses help form the backbone of our economy, and during national crises, the federal

government should support small businesses so that they can bounce back after the emergency ends.

That means ensuring that small businesses have viable alternatives other than accepting acquisition

offers that may lead to job losses, price increases, and further entrenchment of giant corporate power.

Thus far, however, data indicate that large companies may be disproportionately benefitting from

pandemic relief programs. For example, although Congress created the Paycheck Protection Program to

aid struggling small business, reports reveal that hundreds of millions went to large, publicly traded

companies."

 

Not wrong.

 

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