Delaware Court of Chancery Grants $1.2 Billion Damage Award


On October 14, 2011, the Delaware Court of Chancery issued a post-trial opinion in a derivative action that challenged Southern Peru Copper Corporation's acquisition of Minera Mexico, S.A. de C.V., from Southern Peru's own controlling shareholder. The court found that defendants failed to meet their burden under the "entire fairness" standard of review and awarded $1.263 billion in damages.1 We believe this to be the largest single monetary award in Chancery Court history.


At the time of the acquisition, Grupo Mexico, S.A.B. de C.V., was a controlling shareholder of Southern Peru, a NYSE-listed mining company. Grupo Mexico controlled 54.17 percent of Southern Peru's outstanding capital stock, which represented 63.08 percent of Southern Peru's voting power. Grupo Mexico also controlled 99.15 percent of Minera, a Mexican mining company. In February 2004, Grupo Mexico proposed to Southern Peru's board that it acquire Grupo Mexico's interest in Minera for 72.3 million shares of Southern Peru stock, which represented an equity value of approximately $3.05 billion in market value at that time.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Wilson Sonsini Goodrich & Rosati | Attorney Advertising

Written by:


Wilson Sonsini Goodrich & Rosati on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.