Securities Lawyer's Deskbook
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Mergers and Acquisitions





Item 1013 -- Purposes, Alternatives, Reasons and Effects in a Going-Private Transaction


  1. Purposes. State the purposes for the Rule 13e-3 transaction.

  2. Alternatives. If the subject company or affiliate considered alternative means to accomplish the stated purposes, briefly describe the alternatives and state the reasons for their rejection.

  3. Reasons. State the reasons for the structure of the Rule 13e-3 transaction and for undertaking the transaction at this time.

  4. Effects. Describe the effects of the Rule 13e-3 transaction on the subject company, its affiliates and unaffiliated security holders, including the federal tax consequences of the transaction.


Instructions to Item 1013:

  1. Conclusory statements will not be considered sufficient disclosure in response to this section.

  2. The description required by paragraph (d) of this section must include a reasonably detailed discussion of both the benefits and detriments of the Rule 13e-3 transaction to the subject company, its affiliates and unaffiliated security holders. The benefits and detriments of the Rule 13e-3 transaction must be quantified to the extent practicable.

  3. If this statement is filed by an affiliate of the subject company, the description required by paragraph (d) of this section must include, but not be limited to, the effect of the Rule 13e-3 transaction on the affiliate's interest in the net book value and net earnings of the subject company in terms of both dollar amounts and percentages.




Regulatory History


64 FR 61408, 61447, Nov. 10, 1999



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