Commentary on the recent Jarden decision has focused, unsurprisingly, on the use of unaffected stock price in the decision after some commentators viewed the methodology as dead after Aruba. As a recap, unaffected stock price methodology involves determining the fair value of an acquired company using its stock price before the merger announcement.
Some commentary on Jarden:
- Cleary: Unaffected Market Price “Makes a Comeback”
- Deallawyers: “It’s Alive!”
- Reuters: Jarden is a “set-back” for appraisal
- Law360: “Chancery Nixes Investor Bid For $5B Jarden Appraisal Bump”
But the National Law Review had a somewhat different take, cautioning against viewing one data point as the (re)start of a trend, writing “In general, Jarden demonstrates that, in statutory appraisal actions, the Court’s determination of fair value will remain primarily a fact-intensive inquiry involving consideration of different valuation methodologies, as appropriate.”