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Sullivan & Worcester Launches Blog Focusing on U.S. Inbound InvestmentS&W Press Release, June 16, 2009NEW YORK, NY – June 16, 2009 – Sullivan & Worcester is pleased to announce the launch of the USA Inbound Acquisitions & Investments Blog (www.usainbounddeals.com), a resource for non-U.S. businesses and investors interested in investing in the United States. The mission of the USA Inbound Acquisitions & Investments Blog is to provide information on compliance with The Foreign Investment and National Security Act of 2007 (FINSA) and promote discussion on topics relating to inbound acquisitions and investments into the United States economy at all levels. BACKGROUND The Foreign Investment and National Security Act of 2007 (FINSA) is the statute under which the federal government now regulates foreign direct investment into the United States. FINSA applies to certain mergers, acquisitions and takeovers by or with foreign persons, referred to as “covered transactions” replacing the former Exon-Florio provisions that had been in effect since 1988. The essential element of a covered transaction is that control of a U.S. business is transferred or could be transferred to a foreign person. Parties to a covered transaction may voluntarily file a notice with the Committee on Foreign Investment in the United States (CFIUS), the regulatory body, chaired by the Secretary of the U.S. Treasury, which administers and enforces FINSA. Once filed, CFIUS reviews and investigates the covered transaction and its participating parties, and then determines whether it will clear the notice. CFIUS refers to the President of the United States those notices as to which it is unable to make its determination. If parties do not file a notice for their transaction, or if CFIUS does not clear the notice, CFIUS has the unilateral authority to block the transaction from occurring or to seek divestment or rescission after it has closed. Because of this regulatory structure, parties to any transaction that may be a covered transaction are well-advised to know with certainty whether and when compliance with FINSA is required. Sullivan & Worcester’s U.S. Inbound Investments Group provides legal advice on compliance with FINSA and its regulations, as well as all other aspects of legal issues that arise in connection with acquisitions and investments in U.S. businesses and assets. To find out more, please visit www.sandw.com/usainbounddeals. ABOUT THE AUTHORS William A. Newman, a partner in the Corporate Department in our New York office, is a co-author of the Blog. He counsels clients in connection with their planned investments in the United States and mergers with and acquisitions of U.S. businesses, including regulation by the Committee on Foreign Investment in the United States (CFIUS). John A. Howell, a partner in our Washington, D.C. office and the leader of the Government Contracts & Grants Group is a co-author of the Blog. His practice covers the entire spectrum of government contracts law. About Sullivan & Worcester LLP Sullivan & Worcester LLP is a leading corporate law firm providing counsel to domestic and international clients ranging from Fortune 500 companies to emerging businesses. With more than 185 lawyers in Boston, New York and Washington, D.C., the firm offers services in a wide range of areas, including corporate finance, securities, litigation, mergers and acquisitions, tax, real estate, private equity and venture capital, bankruptcy, climate change, regulatory law, and employment and benefits. Sullivan & Worcester is also recognized for its representation of REITs and its deep expertise in mutual fund law. For more information please visit www.sandw.com. Contact: ###
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