It will cost Black & Decker Corp. or New Britain-based Stanley Works $125 million if either of the tool giants has a change of heart and decides to walk away from their recently announced $4.5 billion merger, according to the Baltimore Business Journal.
Black & Decker specified the amount of the termination fee in a filing Sunday with the Securities and Exchange Commission, the Journal reports on its Web site.
The filing also details how much Black & Decker, based in Towson, Md., expects to spend on outside firms to advise it in the deal. Black & Decker said it expects to pay about $25 million in advisory, legal and accounting fees related to its merger with Stanley.
J.P. Morgan Securities Inc. advised Black & Decker on the deal. The company’s legal counsel are Hogan & Hartson LLP and Miles & Stockbridge P.C.
Deutsche Bank and Goldman, Sachs & Co. advised Stanley Works. Its legal counsel are Cravath, Swaine & Moore LLP and Venable LLP.
The deal is expected to close in the first half of 2010, subject to regulatory approval and the approval of shareholders of both companies.
