Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (2707)	8/15/2023 8:41:59 AM
From: Anonymous895	Read Replies (2) \| Respond to of 2977

Maybe hard to believe, but he cited two precedents that said exactly that (Con Edison vs. Northwestern in the 2nd Circuit in the US and Cineplex vs. Cineworld in Ontario) and said he was aware of no precedents in the other direction. I imagine that a Singapore tribunal would be heavily swayed by such precedents instead of trying to chart a brand-new path in law. If the seller does not want to accept such a contract, then they should either not write No Third Party Beneficiaries, or they should specifically carve out that the shareholder expectation damages are an exception in cases of Willful and Material Breach. This contract does not do that. Why do you think that the Singapore arbitration will not follow settled precedent of two respected courts? Mind you, as the speaker there spells out, Silicon Motion can still absolutely sue for specific performance (there is no financing contingency in the agreement, and it is also not quite clear if the existing financing commitment from Wells Fargo et al will survive the whole arbitration process if MaxLinear is ordered to provide specific performance). The process will take years and by that time one would hope that Silicon Motion would be higher valued and would no longer want to sell for just ~$103, but the optionality of having that in the back pocket is presumably quite valuable. And that sword hanging over MaxLinear may also bring them to the table to settle with a higher cash payment than the $160 million termination fee, although honestly, more than $300 million would be surprising to me, considering their present financial condition.