Reuters
Reuters

(The writer is a Reuters Breakingviews columnist. The opinions expressed are their own.)

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DECOUPLING. When mergers get heading, those people merging glimpse for certainty. One form of insurance plan is a crack payment payable if 1 lover jumps, say, for a much better deal. So it is with AT&T’s merger of its media belongings with Discovery. The bigger company’s split payment would be $1.8 billion, although Discovery boss Chief Executive David Zaslav would have to occur up with $720 million. 

Which is in proportion to the two companies’ contributions to the new entity. But Discovery’s lessen price would be a lot more unpleasant, absorbing a 3rd of the company’s money and leaving its total future in limbo. 

It could be even worse. In Canadian National Railway’s bid for U.S. railroad Kansas Metropolis Southern, there could possibly be two fees. Canadian Nationwide seems to be to have wooed Kansas City away from an agreed merger with Canadian Pacific Railway. If it stays that way, the Montreal-centered operator will have to pay back the $700 million penalty designed into Kansas City’s original offer. But if regulators https://prod.stb.gov/news-communications/latest-information/pr-21-22 will not bless the revised union in the promised sort, Canadian National might close up spending an additional $1 billion split payment, to the consternation of Chris Hohn https://www.tcifund.com/files/corporateengageement/canadiannationalrailway/TCI%20-%20CN%20Letter%2018%20Could%202021.pdf of TCI Fund Management. Two crack costs are undoubtedly not greater than one particular. (By Richard Beales) 

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