Standard of Review Changes for Freeze-Out Mergers
On May 29, 2013, the Delaware Chancery Court, in its landmark decision of In re MFW Shareholders Litigation (MFW), held that the “deferential business judgment rule” is the correct standard of review for freeze-out mergers, as opposed to the more rigorous “entire fairness standard.” This decision requires that a freeze-out merger, from the inception of merger negotiations, …
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