PARIS — Is Comtech Telecommunications on solid ground as it prepares to argue in court that Gilat Satellite Networks' business decline is a “material adverse effect” that should permit Comtech to cancel the acquisition?

The Delaware Chancery Court will decide the issue, but one assessment by a presumably disinterested law firm suggests that Comtech will have an uphill struggle.

The reason: The two companies’ merger agreement appears to exclude broad-scale events affecting whole industries, such as a pandemic, from the definition of “material . . .

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