Valuations Underpin DE Chancery’s Ruling in Going-Private Merger

Business Valuation UpdateVol. 20 No. 5
Legal and Court Case Update
May 2014
6799 Investors, NEC
523920 Portfolio Management
dissenting shareholder
fair value, discounted cash flow (DCF), entire fairness, merger, minority shareholder, controlling shareholder, comparable companies method, business judgment, going private

In re MFW Shareholders Litig.
2013 Del. Ch. LEXIS 135
May 29, 2013
US
Federal Court
Delaware
Court of Chancery
Evercore Partners (defendants)
Strine (Chancellor)

Summary

DE Chancery adopts business judgment review standard where controlling stockholder buyout includes two procedural protections for minority and finds valuations from independent financial advisor demonstrate merger was favorable to minority stockholders.

See Also

In re MFW Shareholders Litig.

DE Chancery adopts business judgment review standard where controlling stockholder buyout includes two procedural protections for minority and finds valuations from independent financial advisor demonstrate merger was favorable to minority stockholders.