North Carolina Court Says Deal Price Represents Upper Limit of Tobacco Company’s Fair Value

BVLaw
Court Case Digests
April 27, 2020

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5194 Tobacco and Tobacco Products
312230 Tobacco Manufacturing
shareholder dissent/oppression
expert testimony, fair value, cash flow, comparable companies analysis, statutory appraisal, stock price, discounted cash flow analysis, projections, deal price, precedent transactions analysis, efficient market, unaffected market price, perpetual growth rate
Reynolds American Inc. v. Third Motion Equities Master Fund Ltd.
2020 NCBC 35
US
State Court
North Carolina
Superior Court
Dr. Paul Gompers (plaintiff/company); Dr. Fredrick Flyer, Dr. Mark Zmijewski, Dr. Bilge Yilmaz (defendants/dissenting shareholders)
Bledsoe III

Summary

In appraisal action involving merger of public (tobacco) company, court, guided by key Delaware court decisions, says deal price best reflects fair value and represents upper limit; contemporaneous valuations based on comparable companies, precedent transactions, and DCF support use of deal price.

See Also

Reynolds American Inc. v. Third Motion Equities Master Fund Ltd.

Full Text of Court Cases
April 27, 2020

In appraisal action involving merger of public (tobacco) company, court, guided by key Delaware court decisions, says deal price best reflects fair value and represents upper limit; contemporaneous valuations based on comparable companies, precedent transactions, and DCF support use of deal price.

This article also appears in:
Business Valuation UpdateVol. 26 No. 7