Delaware Chancery Court Once Again Defers to Merger Price in Appraisal Proceeding (Part 2)
Corporate Counsel Weekly
March 22, 2017, Christopher N. Kelly and Mathew A. Golden
In the first article of this two-part series, we discussed recent decisions by the Delaware Chancery Court in which the court relied primarily or solely on the merger price to determine the fair value of appraised stock. In each of the cases where the court deferred to the merger price, however, other valuation methods, such as the discounted cash flow (DCF) method and comparables-based analyses, proved to be unreliable or weak. This led deal lawyers to question whether the court would defer to the merger price where alternative methods of valuation were found to be reliable.
Click here to read Part 1 of this article published on March 20, 2017