Opinion ID: 1952721
Heading Depth: 1
Heading Rank: 20

Heading: Genesis Rejection Impossible

Text: The Genesis merger agreement permits the NCS directors to furnish non-public information to, or enter into discussions with, any Person in connection with an unsolicited bona fide written Acquisition Proposal by such person that the board deems likely to constitute a Superior Proposal. That provision has absolutely no effect on the Genesis merger agreement. Even if the NCS board changes, withdraws or modifies its recommendation, as it did, it must still submit the merger to a stockholder vote. A subsequent filing with the Securities and Exchange Commission (SEC) states: the NCS independent committee and the NCS board of directors have determined to withdraw their recommendations of the Genesis merger agreement and recommend that the NCS stockholders vote against the approval and adoption of the Genesis merger. In that same SEC filing, however, the NCS board explained why the success of the Genesis merger had already been predetermined. Notwithstanding the foregoing, the NCS independent committee and the NCS board of directors recognize that (1) the existing contractual obligations to Genesis currently prevent NCS from accepting the Omnicare irrevocable merger proposal; and (2) the existence of the voting agreements entered into by Messrs. Outcalt and Shaw, whereby Messrs. Outcalt and Shaw agreed to vote their shares of NCS Class A common stock and NCS Class B common stock in favor of the Genesis merger, ensure NCS stockholder approval of the Genesis merger. This litigation was commenced to prevent the consummation of the inferior Genesis transaction.