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P&G May Back Out of Pringles Deal

Diamond Foods' woes cause Procter to reconsider.

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By: TOM BRANNA

Editor

A MAC attack may sink Procter & Gamble’s Pringles sale to Diamond Foods. P&G has the right to terminate the acquisition, now that Diamond has replaced its key executives and will restate its financial results for two years. Those moves by Diamond constitute a real-life material adverse change, or MAC, giving P&G the right to terminate the acquisition. A MAC is a clause placed in takeover agreements that allows a buyer to walk away if a material adverse change happens t...

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