Court Calls Stock Price ‘Most Straightforward’ Indicator of Fair Value

BVLaw
Court Case Digests
February 15, 2018
7379 Computer Related Services, NEC
541519 Other Computer Related Services
dissenting shareholder
beta, fair value, weighted average cost of capital (WACC), discounted cash flow (DCF), statutory appraisal, synergy, projections, capital asset pricing model (CAPM)

Verition Partners Master Fund Ltd. v. Aruba Networks, Inc.
2018 Del. Ch. LEXIS 52
US
State Court
Delaware
Court of Chancery of Delaware
Paul Marcus (petitioners); Kevin Dages (company/respondent)
Laster

Summary

In statutory appraisal proceeding, Court of Chancery says unaffected market price provides “direct evidence of the collective view of market participants” as to target’s fair value whereas deal price minus synergies is a less reliable “indirect measure."

See Also

Verition Partners Master Fund Ltd. v. Aruba Networks, Inc.

In statutory appraisal proceeding, Court of Chancery says unaffected market price provides “direct evidence of the collective view of market participants” as to target’s fair value whereas deal-price-minus-synergies is a less reliable “indirect measure.”