Becoming A Third Party Witness When Competitors Or Suppliers Merge

If your company is customer – or competitor – of a company that is proposing to merge, you may have the opportunity to comment. In some cases you may be asked, or you could affirmatively volunteer. This article from Schiff Hardin attorney Steven J. Cernak considers the pros and cons. Such a merger may well have a big effect on your business, but keep in mind you may be asked to follow up, to explain and elaborate. If you are a competitor, you may, for example, need to explain how the merger affects “competition,” which could be a different narrative than an explanation of how it affects you. Also keep in mind that although your input likely will remain anonymous, the parties to the proposed merger can request a summary and may be able to guess the source. You may also be asked for detailed followup, which could end up generating the same kind of internal costs that a litigation does. “Being a third party witness in a merger investigation allows a company to be a ‘good corporate citizen’ and play a small role in its industry’s development,” the writer concludes. “However, all the costs and benefits should be considered before deciding what role is in the company’s best interests.”