Chapter 4 - THE MERGER WAS PAUSED, NOT DESTROYED BY A BROKEN ENGAGEMENTThe press got it wrong immediately.
BILLION-DOLLAR MERGER COLLAPSES AFTER VIRAL CAKE PRANK.
Great headline.
False.
The merger had not collapsed.
The boards paused it.
Because of due-diligence concerns.
My canceled proposal was embarrassing.
Not a legal trigger.
I made our communications team clarify that.
I would not let corporate governance sound like medieval marriage politics.
Sterling BioPackaging’s independent directors hired outside counsel.
Lawson did the same.
Graham Sterling recused himself from issues involving Chloe and HaloHouse.
My father recused himself from some negotiations because of his close personal relationship with Graham.
I did too where the matter touched my former relationship.
That hurt.
But independence mattered.
Chloe’s mother, Rebecca Sterling, called me.
She cried.
Not asking me to take Chloe back.
Good.
She said:
“We let this become too blended.”
“Yes.”
“I thought because the families were getting closer, disclosure mattered less.”
“It mattered more.”
“I know.”
That was exactly right.
May you like
Related-party transactions become more important when everyone feels like family.
Not less.
