Pure Resources, Inc. v. Shareholders Litigation

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Full Text of Court Cases
October 1, 2002
2836 Biological Products, Except Diagnostic Substances
dissenting shareholder

Pure Resources, Inc. v. Shareholders Litigation
No. 19876 (Del. Chan. 2002)
US
State Court
Delaware
Court of Chancery
Strine

Summary

The Delaware Court of Chancery found that the underlying analyses thta formed the basis for an investment banker's fairness opinion should have been disclosed to the shareholders, and that such information was material to a shareholder's decision to tende ...
Pure Resources, Inc. v. Shareholders Litigation
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See Also

Entire Fairness Versus Solomon Standard

The minority shareholders of Pure Resources, Inc. filed a motion for preliminary injunction to block the tender offer, which was to be followed by a short-form merger, initiated by majority shareholder Unocal Corp.

Underlying Fairness Opinions’ Analyses Are Material Information

The Delaware Court of Chancery found that the underlying analyses that formed the basis for an investment banker's fairness opinion should have been disclosed to the shareholders and that such information was material to a shareholder's decision to tender his shares in connection with a tender offer the controlling shareholder made.