Court Endorses Unadjusted Deal Price as Fair Value Indicator Despite Flaws in Sale Process

BVLaw
Court Case Digests
August 12, 2019
4924 Natural Gas Distribution
221210 Natural Gas Distribution
dissenting shareholder
expert testimony, fair value, discounted cash flow (DCF), going concern, statutory appraisal, synergy, growth rate, deal price, terminal value, unaffected market price

In re Appraisal of Columbia Pipeline Grp., Inc.
2019 Del. Ch. LEXIS 303
US
State Court
Delaware
Court of Chancery of Delaware
William Jeffers (petitioners); Mark Zmijewski, (respondent)
Laster

Summary

In statutory appraisal action featuring publicly traded company, court relies on deal price for fair value; although flawed, sale process, when compared to process in three key high court decisions endorsing deal price, does not undermine validity of deal price; no adjustment for synergies.

See Also

In re Appraisal of Columbia Pipeline Grp., Inc.

In statutory appraisal action featuring publicly traded company, court relies on deal price for fair value; although flawed, sale process, when compared to process in three key high court decisions endorsing deal price, does not undermine validity of deal price; no adjustment for synergies.