Fairness Opinions and Success Fees Can Make for Volatile Mix

Placenti, Frank M.
May 2007
Investment Dealers' Digest;5/7/2007, Vol. 73 Issue 18, p12
Trade Publication
The article focuses on the decision of the Delaware Chancery Court concerning the issue behind the merger of Caremark Inc. with CVS Corp. According to the author, the Court had viewed that the commonly practiced investment banking fee structure in the U.S. requires disclosure and the success fee for the financial advisers is a contingent compensation for the bank's fairness opinions. In this case, the National Association of Securities Dealers (NASD) had proposed the NASD Rule 2290.


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