Proposed acquisition of COMSAT/RSI
Our attorneys advised our client in connection with its proposed acquisition of COMSAT/RSI. At the time, two subsidiaries of COMSAT/RSI were the subject of criminal investigations. The team prepared a risk assessment report and advised senior management about the risks and likely outcomes of the criminal investigation, which concerned government contracts. Just prior to the closing, two officers of the COMSAT subsidiaries were indicted and an indictment was threatened against a COMSAT subsidiary. COMSAT threatened to sue our client if they refused to close the deal. We assisted in conducting a further review of the matter and preparing both a negotiation and potential litigation strategy, if the deal disintegrated. Working with the corporate counsel, the O'Sullivan Graev firm in New York, the team was able to restructure and reprice the deal, avoid litigation, and proceed to closing.