‘9/11 Defense’ Fails to Justify Unfair Merger

Business Valuation UpdateVol. 12 No. 9
Legal and Court Case Update
September 2006
6719 Offices of Holding Companies, NEC
551112 Offices of Other Holding Companies
dissenting shareholder
economic damages & lost profits

Gesoff v. IIC Industries Inc., et al.
No. 19473 (Del. Chan. 2006)
May 18, 2006
US
State Court
Delaware
Court of Chancery
Jessica Zeldin
David N. Fuller, ASA, Neil J. Beaton
Lamb

Summary

A “9/11 defense” fails to obviate unfair merger price, and valuation highlights difficulties inherent in assessing specific and small-company risk in overseas markets.

See Also

Gesoff v. IIC Industries Inc., et al.

The Delaware Court of Chancery determined that a company-specific risk premium should not be added when computing the cost of capital when there is no financial analysis supporting the company-specific risk. Furthermore, the court held that a small stock ...