US Foods Plans to Go Public Following Failed Merger

By Patrick Atchison, J.D. Candidate 2018 | Posted on

On February 9, 2016, US Foods filed a “Form S-1” registration statement with the US Securities and Exchange Commission (SEC) for an initial public offering (IPO). US Foods’s announcement marks only the third US IPO of 2016, a year marred by heightened volatility in global equity markets.

Founded in 1988, US Foods is the second largest food distributor in the United States, supplying over 250,000 customer locations nationwide. US Foods delivers national brand foods and its own food products to supermarkets, educational institutions, restaurants, and medical facilities throughout the nation. Two private equity firms, Clayton Dubilier & Rice (CD&R) and Kohlberg Kravis Roberts & Co. (KKR), own the food distributor.

(more…)

Supreme Court Presses Pause on Carbon Regulation

By David Gomez, J.D. Candidate 2018 | Posted on

The Obama Administration and the Environmental Protection Agency (“EPA”) suffered a setback on February 9, 2016 when the Supreme Court put a temporary halt on enforcement of the EPA’s Clean Power Plan. The Clean Power Plan is an attempt to reduce carbon pollution from its largest source, power plants, by returning the costs of negative externalities stemming from the worst carbon-producing power plants back to them. It punishes heavy carbon-producing power sources such as coal while simultaneously rewarding investment in cleaner energy-producing alternatives such as solar, wind, and natural gas.

New York Governor Andrew Cuomo has gone on record as stating, “[the Clean Power Plan is] crucial to ensuring a cleaner, greener, and safer future for all.” U.S. Solicitor General Donald Verrilli stated in his legal filings that “[a] stay that delays all of the rule’s deadlines would postpone reductions in greenhouse gas emissions and thus contribute to the problem of global climate change even if the rule is ultimately sustained.”

(more…)

Tech Valuation Utopia Projected to Take a Hit in 2016

By Samantha Eddahbi, J.D. Candidate 2018 | Posted on

In recent years, Venture Capital firms around the country have enjoyed the surplus of “unicorn” companies, companies that have not gone public but are privately funded and valued over one billion dollars. However, despite attempts to accelerate valuation growth in tech companies, the stock market seems to indicate that exorbitantly high valuations may take a hit in 2016.

A valuation, determined by different sets of criteria, is the estimated figure of what a company is potentially worth and how much the shareholder’s interest in a company is worth at any given time. It has become standard practice in the tech world for a company to have a valuation in order to attract more venture capital and private equity funding, which creates momentum for high stock prices when and if the company goes public.  After a company goes public, a company’s valuation relies heavily on how well its stocks are doing in the market and on its current tangible assets.

(more…)

Your Uber Receipt is About to Change

By Shneur Wolvovsky, J.D. Candidate 2018 | Posted on

Last week, Uber agreed to settle an unlawful-business-practice lawsuit. The terms of the settlement require Uber to pay a total of $28.5 million to some 25 million people. That is $1.14 per person before attorney fees. Windfall. There are many reasons companies will settle suits, not the least of which is to avoid a protracted and expensive litigation process. Lyft, Uber’s key U.S. rival, recently settled a similar suit. This is one in a series of cases surrounding this issue – if it can be called an issue at all.

(more…)

University of Phoenix to Be Taken Private Amid Mounting Investigations and Losses

By Sean Pinckney, J.D. Candidate 2018 | Posted on

Apollo Education Group, the owner of for-profit education giant University of Phoenix, agreed on February 8 to a $1.1 billion sale to a group of private investors. The for-profit education industry has been quite controversial in recent years, especially as educational institutions have historically been almost entirely non-profit, including private institutions. For-profit education exploded after Congress implemented the “90-10 rule” which, albeit barring for-profit colleges from receiving more than ninety percent of their revenues from the Department of Education, assisted for-profit institutions in receiving more federal aid. From 1990 to 2009, the number of undergraduate students enrolled at for-profit institutions grew from approximately 2 percent to 11.8 percent of the nation’s total number of students.

(more…)

Johnson Controls among the First Tax Inverters of 2016

By Claire Oxford, J.D. Candidate 2018 | Posted on

In one of the first big mergers of the year, Milwaukee-based Johnson Controls will combine with Tyco and move their corporate domicile abroad to Cork, Ireland. The move will save Johnson Controls an estimated $150 million in taxes per year.

Johnson Controls is not the first American company to seek a tax haven abroad. This move is known as “tax inversion,” which is when a company moves its corporate headquarters to a low-income-tax country while continuing its material operations in its original country. Since 1982, an estimated 51 U.S. companies have reincorporated in low-tax countries abroad.

(more…)

Twitter in Turmoil, but Acquisition Unlikely

By Thao Thai, J.D. Candidate 2018 | Posted on

Twitter is facing turmoil as its market cap and shares dipped to an all-time low since it went public in November 2013. Since its initial public offering, the company has lost more than half of its market cap. Twitter’s market cap this week is approximately $10 billion, a significant drop from the $40 billion it commanded in the months following its IPO. Additionally, the company’s stock is trading below its $26 IPO price. Twitter’s stock closed February 8 at a low $14.87 per share.

Twitter’s turmoil makes it potentially vulnerable to acquisition. Last month, rumors of News Corp.’s interest in acquiring twitter gave the company’s shares a boost. However, a News Corp. spokesperson subsequently denied the rumors. Other possible acquisition contenders are Google and Facebook, both of which have reportedly tried to acquire Twitter in the past.

(more…)

Event Recap: Berkeley Sustainable Business & Investment Forum (Part I)

By Jenna Alia, J.D. Candidate 2017 | Posted on

On November 10 & 11, 2015 the University of California, Berkeley School of Law and Berkeley Haas School of Business jointly hosted the inaugural Berkeley Sustainable Business & Investment Forum at the University Club on campus. Key players from across all industries and academia attended the two-day event to share perspectives and insight on evolving topics of risk management, capital investment, and sustainable business practices with a focus on long term growth and value creation for all stakeholders.

The event was co-sponsored by PepsiCo, Visa, and PriceWaterhouseCoopers (“PwC”). The forum focused on the advancement of risk management, capital allocation, and sustainable business practices, with an emphasis on long-term value-creation

This is part one of a three-part series dedicated to coverage of the event.

(more…)

Event Recap: Berkeley Sustainable Business & Investment Forum (Part II)

By Kevin Chiu, J.D. Candidate 2018 | Posted on

On November 10 & 11, 2015 the University of California, Berkeley School of Law and Berkeley Haas School of Business jointly hosted the inaugural Berkeley Sustainable Business & Investment Forum at the University Club on campus. Key players from across all industries and academia attended the two-day event to share perspectives and insight on evolving topics of risk management, capital investment, and sustainable business practices with a focus on long term growth and value creation for all stakeholders.

The event was co-sponsored by PepsiCo, Visa, and PriceWaterhouseCoopers (“PwC”). The forum focused on the advancement of risk management, capital allocation, and sustainable business practices, with an emphasis on long-term value-creation

This is part two of a three-part series dedicated to coverage of the event.

(more…)

Event Recap: Berkeley Sustainable Business & Investment Forum (Part III)

By Kevin Chiu, J.D. Candidate 2018 | Posted on

On November 10 & 11, 2015 the University of California, Berkeley School of Law and Berkeley Haas School of Business jointly hosted the inaugural Berkeley Sustainable Business & Investment Forum at the University Club on campus. Key players from across all industries and academia attended the two-day event to share perspectives and insight on evolving topics of risk management, capital investment, and sustainable business practices with a focus on long term growth and value creation for all stakeholders.

The event was co-sponsored by PepsiCo, Visa, and PriceWaterhouseCoopers (“PwC”). The forum focused on the advancement of risk management, capital allocation, and sustainable business practices, with an emphasis on long-term value-creation

This is part three of a three-part series dedicated to coverage of the event.

(more…)