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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (16399)	7/27/2023 1:48:22 PM
From: Elroy	Read Replies (1) \| Respond to of 26781

Ok, who's an expert on merger stuff?!!? MXL has decided to accuse SIMO of experiencing a material damaging effect which makes the merger moot, andaccused SIMO of willfully breaching covenants in the agreement, and furthermore the deal expired on May 7th (!!). These all seem like made up nonsense, and SIMO denies them all and intends to go to Singapore artibtration to force MXL to complete the deal. The Singapore arbitration page says the average length of an arbitration is 14 months (huh?), but I'm sure it varies. So anyways, here's the question. Lets say SIMO wins in arbitration, and Singapore determines that it was MXL that breached the agreement and they order MXL to move forward with the deal. But what if MXL can't get the $3 billion cash financing at that time. What happens then? Any idea? I'm curious if SIMO's award is capped at the $160m break up fee, or whether MXL - because of their bad behaviour - may be liable for the entire $3 billion, and since they don't have it, might SIMO shareholders end up owning all of MXL? I don't know what cards MXL has up their sleave, but I think they are in big doggie doo doo.