Tough Disclosure Issues In Take-Private Transactions

Law360, New York ( April 3, 2015, 10:12 AM EDT) -- One of the tougher issues buyers face when engaging in preliminary discussions regarding a potential going-private transaction is whether and when an amendment to required U.S. Securities and Exchange Commission stock ownership disclosures needs to be filed as steps are taken to advance the transaction. Recent settlements between the SEC and officers, directors and major shareholders for failure to update their stock ownership disclosures to reflect material changes — including steps to take a company private — illustrate the importance of careful consideration of these issues when pursuing a going-private transaction....

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