No ‘Long-Recognized Principle’ Against Use of Market Price as Fair Value Indicator, High Court Says

BVLaw
Court Case Digests
July 9, 2020
6719 Offices of Holding Companies, NEC
551112 Offices of Other Holding Companies
dissenting shareholder
expert testimony, discounted cash flow (DCF), event study, merger price, statutory appraisal, synergy, terminal value, market value, comparable companies method, efficient market, unaffected market price

Fir Tree Value Master Fund v. Jarden Corp., (Jarden III)
2020 Del. LEXIS 237
US
State Court
Delaware
Supreme Court of Delaware
Dr. Mark Zmijewski (petitioners); Dr. Glenn Hubbard (company/respondent)
Seitz

Summary

High court affirms trial court’s use of unaffected market price as fair value in statutory appraisal involving merger of publicly traded company; high court rejects petitioners’ late argument that, where sale process was flawed and company failed to prove synergies, deal price should act as floor.

See Also

Fir Tree Value Master Fund v. Jarden Corp., (Jarden III)

High court affirms trial court’s use of unaffected market price as fair value in statutory appraisal involving merger of publicly traded company; high court rejects petitioners’ late argument that, where sale process was flawed and company failed to prove synergies, deal price should act as floor.