Key 2016 Appraisal Decisions That Rejected Merger Price

By Ronald Brown III and Keenan Lynch, Skadden Arps Slate Meagher & Flom LLP ( December 6, 2016, 11:22 AM EST) -- There is a general perception that statutory appraisal challenges have been on the rise over the past several years. The Delaware Court of Chancery has issued a number of opinions during that time that use the merger price minus synergies as the best evidence of fair value. However, several notable opinions in 2016 have departed from this trend, relying instead on a discounted cash flow valuation derived from management projections and finding that the fair value for appraisal was significantly above the price paid by the acquirer in the transaction....

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