News & Analysis as of

Mergers Section 262

Troutman Pepper

Upshots of Del. Holding on Appraisal Rights Waivers in M&A

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In what represents a victory for private equity and venture capital investors, on Sept. 13, the Delaware Supreme Court issued a decision in Manti Holdings LLC v. Authentix Acquisition Co., confirming the enforceability of...more

Troutman Pepper

Appraisal Waivers Are Enforceable Under Delaware Law

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On September 13, the Delaware Supreme Court issued a decision in Manti Holdings LLC v. Authentix Acquisition Co., confirming the enforceability of appraisal waivers by private contract so long as the stockholders agreeing to...more

K&L Gates LLP

In a Section 262 Appraisal Rights Proceeding, Chancery Court Accepts a Modified Version of Petitioners' Valuation of a Merging...

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In Manichaean Capital, LLC, et al. v. SourceHOV Holdings, Inc., C.A. No. 2017-0673-JRS (Del. Ch. January 30, 2019), certain minority stockholders of a merging company filed a petition with the Delaware Court of Chancery (the...more

White and Williams LLP

Delaware Trial Court Interprets Coverage Under a D&O Policy to Include an Appraisal Action as a Securities Claim

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Delaware courts have established rules of construction for interpreting insurance policies. Among the most basic of these rules is that clear and unequivocal policy language will be given its plain meaning; and if the...more

White and Williams LLP

Delaware Enforces Common Stockholder Contractual Waiver of Appraisal Rights

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The Delaware Court of Chancery in Manti Holdings LLC v. Authentix Acquisition Company recently confirmed that a stockholder agreement may contractually restrict the exercise of statutory appraisal rights. Although the court...more

White and Williams LLP

Delaware Chancery Court Applies Strict Statutory Construction to Reject Appraisal Rights Following Reverse Merger

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The ability of stockholders to seek and recover statutory appraisal of the value of their shares when dissenting from the consideration offered in a merger transaction has been restrained by recent amendments to the Delaware...more

Morris James LLP

Chancery Court Declines Stockholder Invitations to Expand Transactions Subject to Appraisal Rights

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Appraisal rights have been the subject of increased focus in the current, post-Corwinenvironment, in which a fully-informed noncoerced stockholder vote suffices to dispose of most M&A challenges. In two recent decisions, the...more

Morris James LLP

Court Of Chancery Holds That Dr. Pepper And Keurig Reverse Triangular Merger Does Not Trigger Appraisal Rights

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City Of North Miami Beach General Employees’ Retirement Plan v. Dr. Pepper Snapple Group Inc., C.A. No. 2018-0227-AGB (Del. Ch. June 1, 2018) - In a reverse triangular merger, a parent company uses a subsidiary to acquire...more

Goodwin

Delaware Supreme Court Clarifies The Role Of Deal Price In Appraisal Proceedings

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In a long-awaited decision regarding Delaware’s appraisal statute, the Delaware Supreme Court ruled that in determining the fair value of a company, there is no presumption that the agreed upon transaction price is the fair...more

Morris James LLP

Court Relies on DCF Valuation to Appraise Private Company

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In an appraisal proceeding under Section 262 of the Delaware General Corporation Law, the Delaware Court of Chancery determines the "fair value" of a company's "shares exclusive of any element arising from the accomplishment...more

Cooley LLP

Blog: Dell Decision and Recent Amendments to Delaware’s Appraisal Statute

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Section 262 of the DGCL provides a statutory remedy for stockholders who do not vote in favor of certain M&A transactions (generally cash mergers) to petition the corporation to buy their stock at a price equivalent to the...more

Saul Ewing LLP

Delaware Enacts Annual Update to Its Corporate Statutes

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With the legislative session drawing to a close, Delaware Governor Jack Markell has signed into law the annual amendments to the General Corporation Law and the Alternative Entity Statutes. In addition to more technical...more

Morris James LLP

Appraisal Claims Dismissed Due to Custodial Banks' Technical Acts

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Despite being a court of equity, there are certain instances where the Delaware Court of Chancery demands "strict compliance" with procedural provisions irrespective of the potential for an inequitable outcome. For example,...more

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