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O'Melveny's Terner, Tonsfeldt Quoted in Orange County Business Journal on Competitive Deal Bidding

January 23, 2012

O'Melveny & Myers Mergers and Acquisitions partners Andor Terner and Steven Tonsfeldt commented on topping bids in the January 23, 2012, Orange County Business Journal article "Competitive Bidding Adds Complexity, Lawyers to Deals." Terner, who is based in the Firm's Newport Beach office, noted that topping bids add a layer of complexity that M&A lawyers are often called in to help a client navigate. “In years past, once you had an announced transaction, you seldom were concerned with these topping bids,” added Tonsfeldt, who leads the Firm's M&A practice and is based in Silicon Valley. “They were fairly unusual then, whereas now—certainly in the last year—OC has seen a number of them.”  

In 2011, Terner led an O'Melveny team that represented Newport Beach-based semiconductor supplier Conexant Systems Inc. in  a sale involving such an offer and a cancellation of a previous agreement.  “A topping bid doesn’t necessarily have to be hostile,” Terner said. “We’re probably going see more of it in the next couple of years under the presumption that many public companies are undervalued. Topping bids can also generate litigation, as well as matching bids and potentially new topping bids.”