Tracking Alpha
What it is
A deal that ends without closing: the agreement is terminated, for example because an approval is refused, holders vote it down or the buyer walks away.
On the site asAfter failure
How to read it
A deal that ended this way shows the stage After failure. Depending on why it ended, a termination fee or a reverse termination fee may be owed.
The spread is usually small next to what the shares can fall if the deal breaks. That is why the list carries the terms that bear on closing: conditions, approvals, fees and dates. The undisturbed price shows where the shares traded before the deal; after a break they can trade above or below it.
Related terms
- Undisturbed priceA reference close for where the target's shares traded before the deal, taken on a day set by a fixed rule.
- Outside dateThe date after which either side may end the agreement if the deal hasn't closed.
- Closing conditionsWhat must happen before the deal can close, such as holder approval, antitrust clearance or other approvals.
