Tommy Hilfiger M&A

Tommy Hilfiger (TOM)
Apax Partners
$1.6B

Summary

Private equity firm to take company private for $1.6B

$16.80 per share
Hedge fund criticizes deal

Schedule 13D 1.23.06
Sowood Capital has 6.3% position
Asserts TOM is worth $19.50 to $27.00 per share

Clears HSR Act review 1.31.06

Background to the Merger

Announced 12.23.05

Closed 5.10.06

Advisors

Financial

Apax: Citigroup
TOM: JP Morgan

Legal

Apax: Skadden / Clifford Chance
TOM: Wachtell

Merger Agreement

General

EDGAR filing
Hyperlinked version
Detailed hyperlinked index follows

Article I The Merger

1.1 The Merger
1.2 Closing

1.3 Effective Time
1.4 Effects of the Merger

1.5 Memo and Articles of Assoc of Surviving Corp
1.6 Directors
1.7 Officers

Article II Conversion Of Shares; Exchange Of Certificates

2.1 Effect on Shares
2.2 Exchange of Certificates

Article III Company Reps

3.1 Qualification, Organization, Subsidiaries
3.2 Capital Stock
3.3 Corporate Authority Relative to this Agreement; No
Violation
3.4 Reports and Financial Statements
3.5 Internal Controls and Procedures
3.6 No Undisclosed Liabilities
3.7 Compliance with Law; Permits
3.8 Employee Benefit Plans
3.9 Absence of Certain Changes or Events
3.10 Investigations; Litigation
3.11 Tax Matters
3.12 Labor Matters
3.13 Intellectual Property
3.14 Opinion of Financial Advisor
3.15 Required Vote of the Company Shareholders
3.16 Material Contracts
3.17 Finders or Brokers
3.18 Properties and Leases
3.19 Environmental Matters
3.20 State Takeover Statutes
3.21 Insurance Policies

Article IV Parent And Merger Sub Reps

4.1 Qualification, Organization, Subsidiaries
4.2 Corporate Authority Relative to this Agreement; No
Violation
4.3 Compliance with Law; Permits
4.4 Investigations; Litigation
4.5 Available Funds
4.6 Capitalization of Merger Sub
4.7 Guarantee
4.8 No vote of Parent Stockholders
4.9 Finders or Brokers

Article V Covenants And Agreements

5.1 Conduct of Business by the Company and Parent
5.2 Investigation
5.3 No Solicitation
5.4 Filings, Other Actions
5.5 Stock Options and Other Stock Based Awards;
Employee Matters
5.6 Reasonable Best Efforts
5.7 Press Releases
5.8 Indemnification and Insurance
5.9 16 Matters
5.10 Control of Operations
5.11 Certain Transfer Taxes
5.12 Financing
5.13 Merger Sub
5.14 [Intentionally Omitted]
5.15 Existing Indebtedness
5.16 Notification

Article VI Conditions To The Merger

6.1 Each Party
6.2 Company
6.3 Parent and Merger Sub

Article VII Termination

7.1 Termination or Abandonment
7.2 Termination Fees
7.3 Amendment or Supplement
7.4 Extension of Time, Waiver

Article VIII Miscellaneous

8.1 No Survival of Representations and Warranties
8.2 Expenses
8.3 Counterparts; Effectiveness
8.4 Governing Law
8.5 Jurisdiction; Enforcement
8.6 Notices
8.7 Assignment; Binding Effect
8.8 Severability
8.9 Entire Agreement; No Third-Party Beneficiaries
8.10 Headings
8.11 Remedies
8.12 Interpretation
8.13 Definitions

Proxy Solicitation

Definitive proxy statement 4.03.06

Table of contents

Preliminary proxy statement 1.17.06

Table of contents

Deal Protection

No shop covenant

Merger agreement §5.3
Proxy statement disclosure

Break-up fee

$50mm, plus out-of-pocket expenses
Agreement §7.2
Proxy statement disclosure

Regulatory Approvals

HSR Act

Merger agreement §5.6
Proxy statement disclosure

Fairness Opinion

JPMorgan fairness opinion

Proxy statement disclosure

Tax Matters

Disclosure

Proxy statement disclosure

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