Chancery's Dell Ruling Gives New Life to Apprisal Actions


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The Delaware Chancery Court’s ruling that valued Dell stock at nearly $4 above the transaction price in its roughly $25 billion take-private deal throws cold water on any notion that the court would continue to look no further than market price in appraisal actions, a move that experts say encourages shareholders’ attorneys to keep bringing such challenges.
Outside shareholders should be gratified and extremely encouraged by the court’s decision to perform traditional valuation techniques to protect them and, when necessary, use its judgment to price a deal higher than the various corporate insiders,” said David Graff, co-chair of Anderson Kill PC's corporate and commercial litigation practice group. “The Chancery Court is not going to let itself be constrained by an artificial ceiling set by market participants when it believes there’s compelling data.&rdquo