What do Dell Inc., Dole Foods Co. and 3M Cogent Inc. have in common? The companies look pretty different from the outside, but all three have experienced the same challenge recently: high-profile appraisal right challenges or threats of such challenges raised by shareholders in the wake of mergers and acquisitions.
Shareholders may exercise these rights to contest the price of a company being sold on the basis that they are not getting “fair value” for their shares. A judge then analyzes the independent expert valuations of the company, and may make his or her own to determine the stock’s actual value. These appraisal right claims, while possibly advantageous to stockholders, particularly hedge funds with an activist bent, can create plenty of headaches for in-house counsel, and raise a litigation threat.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
