The Electric Commentary

Thursday, January 20, 2005

The Future of Public Law School

Over at the Conglomerate Professor Smith notes an interesting post by Brian Leiter, and another by Stephen Bainbridge (not exactly two peas in a pod):

Brian and Steve are both right. Gone are the days when the law school can be a cash cow for the universities. Legal scholars are more expensive than professors in many other departments, and law school programs are increasingly resource intensive. While law school alumni often provide substantial support, tuition dollars are essential to the funding structure. Virginia and Michigan were ahead of the curve in "privatizing" their law schools, and those states have benefited. Wisconsin should follow their lead.

Read the whole thing, and when you're finished, read Professor Hurt's take on the Coors-Molson merger (which is of particular interest to me):

As in all great merger stories, there is a family quarrel at Molson, with Chairman Eric Molson pushing the merger and cousin Ian Molson, former Deputy Chairman, arguing against the merger. Ian has been trying to find other merger partners, but faced an uphill battle straight out of an M&A textbook. Coors and Molson have an existing partnership whereby Molson brews, markets and distributes Coors beer in Canada. This partnership accounts for 20% of Molson's operating profit and 13.8% of operating earnings. This agreement seems to have a "Change of Control" provision whereby upon Molson merging with anyone else, Coors takes over sales and marketing of Coors Light in Canada, with Molson being obligated to continue to produce and distribute Coors for 10 years under the same contract terms. The cost of this provision to other would-be suitors has been valued at $50 million annually. Therefore, the merger is only economic for Coors, and no other merger partner. A classic example of how a long-term contract can give a company some synergy and integration but also tie its hands.

And, as she goes on to point out, what's truly important is how this affects Miller.


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