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Matt Levine

I Was Told There’d Be a Cake Merger

Also a threatening letter, a toehold stock position, a venture-capital paper and a tweet from an undisclosed location.

Programming note: Money Stuff is going to be off for a few weeks starting tomorrow. I planned this before Elon Musk tried to cancel his Twitter deal, and I am not a monster, so there will be occasional columns as Musk or other news require. But it will not publish every day; we’ll resume normal service sometime in August.

Not much is going on today, so I thought we might talk about an interesting Delaware Chancery Court decision from last April. In March 2020, a private equity fund, Kohlberg & Co., signed a merger agreement to buy a company called DecoPac Holdings Inc., which “sells cake decorations and technology to supermarkets for use in their in-store bakeries,” in a $550 million leveraged buyout. Kohlberg also got commitment letters from lenders to provide debt financing for the deal.