Takeover-hungry chief executives should avoid sending ultimatum letters that spell out proposed terms, a high-powered banking lawyer told financial executives last week.

Such "bear-hug" letters are far more common than most people realize, said H. Rodgin Cohen of the Sullivan & Cromwell law firm. They can be harmful to both the sending and the recipient bank, he warned.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.