We’ve posted before about the article by Professors Charles Korsmo and Minor Myers analyzing the recent surge in appraisal activity. These co-authors have prepared a new draft article to be published in the Delaware Journal of Corporate Law, proposing reforms for appraisal litigation. Based on their latest research the authors stand by their prior conclusion
Appraisal-Eligible Deals
Can Appraisal Rights Be Available in an All-Stock Deal?
By Steve Hecht & Michael Hampson on
A frequently asked question involves the availability of appraisal rights when investors are being offered only stock in the acquiring corporation in exchange for their shares.
The answer is typically no. The Delaware appraisal statute provides that appraisal rights are available in a wide range of statutorily permitted mergers. 8 Del. C. § 262(b). However…