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Technology Stocks : Motorola (MOT)

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To: JakeStraw who wrote (3417)8/15/2011 10:35:35 AM
From: Sr K   of 3436
 
Reuters

Google would pay Motorola $2.5 bln to walk -source 08/15 10:28 AM

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* Deal break fee is $375 million -- source

* Reverse break fee represents 20 percent of deal size

By Nadia Damouni

NEW YORK, Aug 15 (Reuters) - Google Inc, would pay Motorola Mobility Holdings Inc a whopping $2.5 billion if it decided to walk away from its proposed $12.5 billion acquisition of Motorola, a source close to the situation said.

The reverse break-up fee represents 20 percent of the total size of the deal, announced Monday.

On the other side, if Motorola were to decide not to go through with the deal, it would have to pay Google a $375 million break-up fee, the source said. That represents 3 percent of the deal valuation of $12.5 billion.
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