"WBD used pointed language, calling Paramount's bid the "largest leveraged buyout in history by a wide margin" and tying its potential failure to previous big LBOs that didn't close on the initially agreed-upon terms. In its new filing, WBD also described Paramount's financial condition as "not strong," noting that its credit was already rated "junk" by S&P before the "extraordinary amount of debt financing" required by the deal."
"David Zaslav-led WBD also ramped up its accusations that Paramount has acted litigiously and leaked to the press. In the filing, WBD cited new press reports in the New York Post indicating Paramount was considering abandoning its offer and might pursue "DefCon 1" litigation against WBD's board. WBD said that Paramount didn't deny the reports, suggesting that the company was leaking to the press. WBD had previously complained that there had been "extensive media leaks and rumors" about Paramount's proposals."
Warner Bros. Discovery's board rejected Paramount Skydance's bid for the eighth time and favored Netflix's offer. WBD called Paramount's proposal the "largest leveraged buyout in history by a wide margin" and linked its risk to other large LBOs that failed to close on initial terms. WBD described Paramount's financial condition as "not strong" and noted S&P had rated its credit "junk" before the deal's debt requirements. Paramount said $40.4 billion in equity is backstopped by Larry Ellison. WBD accused Paramount of litigiosity and leaking to the press, citing New York Post reports that Paramount might abandon its offer and pursue "DefCon 1" litigation. M&A experts said the tougher language likely anticipated a lawsuit.
Read at Business Insider
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