FILE PHOTO: Endeavor Group Holdings logo is displayed on a screen on the floor of the NYSE in New York - Endeavor Group's decision to deny minority shareholders the ability to veto a $13 billion deal to take the entertainment conglomerate private is the latest example of a company's controlling investors risking lawsuits to avoid paying a higher deal price.
Nearly a dozen lawyers and bankers told Reuters there is a growing realization among the controlling investors of companies that the financial benefit of depriving minority shareholders of a deal veto outweighs the legal risks. These include buyout firm Thomas H. Lee's $2.5 billion deal in February to take medical equipment management company Agiliti private, and grill maker Weber's controlling shareholders led by BDT Capital acquiring it last year for $3.7 billion.
Skipping the vote, on the other hand, prevents hedge funds and other activist shareholders from making deal price demands and allows a transaction to close more quickly, the lawyers say. Silver Lake has experience with investors trying to squeeze it for more money on a deal. It opted for a vote for minority shareholders when it inked a $24.4 billion deal in 2013 to take Michael Dell's eponymous computer maker private.
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