Taking a public company private is no longer as straightforward a proposition as it used to be, says Weil, Gotshal & Manges. A number of recent sponsor-backed going private transactions have encountered increased opposition and resistance from several sources. Sponsors have recently faced challenges to signed deals by competing strategic and financial bidders, such as Community Healthcare’s bid for Triad, Apollo’s bid for EGL and Fillmore Capital’s bid for Genesis HealthCare. Sponsors are also experiencing increased judicial skepticism with respect to management’s conflicts of interest in going private transactions.
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