Chancery Recognizes Reality of Control Premium in Third-Party Offers

Business Valuation UpdateVol. 23 No. 1
BVLaw Case Update
January 2017
5942 Book Stores
451211 Book Stores
breach of fiduciary duty
control premium, breach of fiduciary duty, freeze-out merger, minority discount, minority interest, controlling stockholder buyout, going private

In re Books a Million Stockholders Litig.
2016 Del. Ch. LEXIS 154
October 10, 2016
US
State Court
Delaware
Court of Chancery of Delaware
N/A (plaintiffs); N/A (defendants)
Laster

Summary

Court says special committee’s accepting controlling shareholder’s lower bid over third-party’s higher offer is not sign of bad-faith dealing but of reality that “buyers of corporate control will be required to pay a premium” to acquire the whole company.

See Also

Chancery Recognizes Reality of Control Premium in Third-Party Offers

Court says special committee’s accepting controlling shareholder’s lower bid over third-party’s higher offer is not sign of bad-faith dealing but of reality that “buyers of corporate control will be required to pay a premium” to acquire the whole company.