Southern Pacific Resource Corp STPJF

Break Up Fee

[ticket2ride]

Before there is a break up fee , there needs to be a deal.

The chances of there being a deal in place that includes a break up fee without shareholders knowkedge and ability to vote on said deal is slim no none ...

Remember Shareholders own the company not Management  , although it may not seem like it at times , they actually do work for the Owners (Shareholders).

(not a fan of this plan but) if Brion were to make an offer there would be no exchanged shares as BRION is not a public company but rather a joint venture of 2 other public companies. you would only get the cash...

Definition - What does Break-up Fee mean?

A break-up fee is paid in an acquisition by the party that decides not to pursue the deal. The break-up fee can be paid to either the buyer or the seller. A seller may ask for a break-up fee if not completing the deal would have a negative consequence on the seller, if the sales process is disruptive to the operation of the business, or when the seller has been approached with an unsolicited offer. A break-up fee offered in the letter of intent will show the buyers commitment to completing the acquisition.

Similarly, a buyer will ask for a break-up fee if the seller has the option to shop the deal to other buyers. The break-up fee paid to a buyer will be a reimbursement for transaction costs incurred if the deal does not close due to the seller's actions.

Break-up fees can range from 1-3% of the total deal value.

T2R

[CatCatCat]

doesnt have to be a deal, just an LOI...

[adamsight]

An LOI can have a fee but typically does not and in STP circumstance an LOI would not be accepted as a committment. quote "It is the Company's current intention not to disclose developments with respect to the strategic review process until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate"end quote A LOI

[CatCatCat]

WTF are you talking about...you should stop adam you're embarassing yourself dont worry about replying your useless and now on ignore

[freedom45]

girls, a break up fee is what STP would pay for backing out of a deal if a better offer came forward. The new offering company typically pays it to the first company that had the deal cancelled..........I believe you are discussing a reverse break-up fee bbt that will not apply to STP if a deal is made..........................If the `icds don't work there is n deal...................if they

[ShatnersRug]

STP management is most certainly negotiating a deal on behalf of shareholders. After it is announced, the vote will take place. In the event that deb holders shoot down a deal, would the breakup fee become null and void?

[Pandora]

If the capex has stopped re ICD's you know what that means as far as results are concerned and the more time that passes the closer those results become. A bad release re results will be another disaster. Hopefully (and I say that with a lot of emphasis on hope) there will be some news or action prior to results numbers.