LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Termination Fee

[epiphany2]

Is anybody worried about having to pay the termination fee of $38.7 million if the deal falls through?

[LittleGuy1]

I believe if it is voted down there is no fee. That clause was likely there to prevent others from making a bid on LSG.

[epiphany2]

I took a look on Wikipedia and grabbed this segment about termination feed (specifically regarding mergers and acquisitions): In mergers and acquisitions termination fees are often levied in the event that one party fails to consummate a merger—for instance, because it was unsuccessful in getting shareholder approval or because it agreed to a competing offer. For instance, in 2005Johnson

[rockmstockm]

it's a conditional fail not I'd shareholders say no