Thursday, February 09, 2012

Diamond Foods Debacle May Crack Open a MAC -

Blue Diamond Almonds (Garden Herb)       (Photo credit: iateapie)Ok, I learned something. A MAC is more than just a computer...a Material Adverse Change.

Diamond Foods Debacle May Crack Open a MAC -

"A rare event occurred late on Wednesday in the deal world.

Diamond Foods, the seller of Emerald snack nuts, announced it would restate its financial results for two years. It also placed its chief executive, Michael J. Mendes, and its chief financial officer, Steven M. Neil, on administrative leave.

Throwing out executives is anything but rare these days, to be sure. But Diamond had previously agreed to acquire the Pringles brand from Proctor & Gamble. So its restatement and executive changes likely constitute a real-life material adverse change, or MAC, giving P.&G. the right to terminate the acquisition, something P.&G. is now likely to do."

BTW this would make a great case for a class discussion. Just saying ;)

Enhanced by Zemanta

No comments: