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Appraisal Rights Litigation Blog

Category Archives: August 2016 Amendments

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“Appraisal Risks Factor High”

Posted in Appraisal Conditions, August 2016 Amendments, Entitlement to Appraisal, Merger Price

Cooley LLP highlights that increased appraisals are being factored into mergers.  Following up on a previous piece, Cooley LLP notes that appraisal costs can be large, referencing the over $50 million added to the merger price in Dell, and further comments on the rise of appraisal claims, which Cooley calculates as a 267% increase from… Continue Reading

Challenges for Appraisal Arbitrage?

Posted in Appraisal Arbitrage, August 2016 Amendments

Have the recent Delaware statutory amendments and major Dell decision threatened the appraisal arbitrage strategy?  Business Law Prof Blog (via a guest post) acknowledges that while these two developments do not prevent appraisal arbitrage — indeed, the Delaware legislature rejected a proposal to crack down on arbitrage — they may be part of an overall… Continue Reading

Prepayment Strategies Under the New Appraisal Rules

Posted in August 2016 Amendments, Interest on Appraised Value, Prepayment of Merger Consideration

A key aspect of the August 1 changes to Delaware appraisal law permits companies to unilaterally prepay some or all of the merger consideration, thereby stopping the interest accrual on such prepaid amounts.  A recent article by Bloomberg discusses prepayment strategies under this new rule and echoes the point posted to this blog repeatedly: the new… Continue Reading

Appraisal is “Alive and Well”

Posted in August 2016 Amendments, Interest on Appraised Value, Prepayment of Merger Consideration

As reported in The Hedge Fund Law Report‘s article, “Recent Legislative and Judicial Developments Fail to Diminish Appeal of Stockholder Appraisal Actions As Strategy for Hedge Fund Managers” [$$$], the recent statutory amendments have failed to diminish the appeal of stockholder appraisal actions as a strategy for hedge fund managers.  According to this article, that… Continue Reading