In the October 2015 edition of the American Bar Association Business Law Section’s Business Law Today, Partner Rebecca Butcher co-authors an article on The Latest Significant Delaware Appraisal Decisions and Potential Effects on Appraisal Litigation.
The number of post-merger appraisal petitions filed in Delaware has sharply increased in recent years. The Delaware Court of Chancery has handed down a number of appraisal decisions in 2015 that are likely to affect the continued attractiveness and availability of an appraisal arbitrage strategy. These most recent decisions suggest that the success of the appraisal arbitrage strategy likely will hinge on the quality of the sales process for the transaction. Additionally, potential amendments to Delaware’s appraisal statute attempt to ensure that appraisal actions are motivated by a genuine dispute over the fairness of the merger price.