Nondisclosure agreements between activists and companies are often viewed as perfunctory documents, but they are often very powerful contracts that set the tone for the entire insurrection situation, says Wachtel, Lipton, Rosen & Katz partner. , Elina Tetelbaum made the claim on her latest podcast, “Activist Investing Today.''
“NDAs are usually one of the first documents negotiated,” she explained, referring to settlement negotiations that often take place between companies and investors seeking change.
On AIT, Tetelbaum, who advises companies targeted by activists, provides a behind-the-scenes look at the typical timing of NDAs and the types of transaction and campaign restrictions they often include. introduced.
“Confidentiality agreements often include a clause explaining that the existence of the non-disclosure agreement is confidential and therefore we cannot know anything about it,” she said.
In other cases, she explained, some details are provided, such as the NDA that Walt Disney Co. (DIS) signed with ValueAct Capital Management LP in January. Tetelbaum explained why Disney made such an information-sharing arrangement, but she also expressed some concerns about her strategy.
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