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Proposed settlement of class action relating to minority buyout fails to win the approval of the Delaware Court of Chancery

  • Stikeman Elliott LLP
  • -
  • Canada, USA
  • -
  • November 20 2007

Exploratory negotiations towards a going private transaction may well have violated a shareholders' agreement provision barring such discussions unless the Special Committee invited them - ruling suggests that such an invitation may need to be formally issued before negotiations begin, not merely at the point where the price settled on is to be voted on