Appraisal rights have received increased attention following the
Delaware Chancery Court's May 2016 ruling in the Dell case. The
ruling valued Dell shares at 28% more than the $13.75 paid to
investors in the company's 2013 management-led buyout; which means
investors were underpaid by nearly $6 billion. However, the
company has paid dissenters just $37 million, leaving $5.96
billion on the table. Why? Because Dell's shareholders did not
properly exercise their appraisal rights.
not unusual - there are hundreds of appraisal-eligible M&A deals
each year and roughly 10-15% result in appraisal petitions. As a
fiduciary, you should be identifying those deals that are
undervalued and, where appropriate, asserting your statutory right
to receive fair value for your investments.
FRT's Appraisal Rights webinar to learn:
What are appraisal rights and how are they perfected?
What are the results of past appraisal petitions and premium
How can you avoid issues of standing at the outset?
How can you ensure you don't miss an opportunity to exercise your
rights in cases like Dell?