Appraisal Rights Limitations Coming to Delaware

Michael Huttenlocher and Sandra Saunders wrote this bylined article concerning “appraisal arbitrage” strategies used by investors in Delaware-based companies to vote against mergers or consolidations when they believe fair value is more than the offering price. The authors wrote that some investors “may have to rethink these strategies” in light of a new Delaware law that limits the ability of certain investors to engage in appraisal arbitrage following a merger.