Exercising your Appraisal Rights and Ensuring Fair-Value for your Shares
Appraisal rights have received increased attention after the Delaware Chancery Court's May 2016 ruling in the Dell case, which valued Dell shares at 28% more than the $13.75 paid to investors in the company's 2013 management-led buyout. That means Michael Dell underpaid investors by nearly $6 billion. However, the company has paid dissenters just $37 million of that $6 billion. Why was $5.96 billion left on the table? Because Dell's shareholders did not properly exercise their appraisal rights.
Dell is 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.
Watch our on-demand webinar as Mike Lange, Securities Litigation Counsel at FRT, and Eric Anderson, Esq., Andersen Sleater LLC, share insights into:
What are appraisal rights and how are they perfected?
What are the results of past of appraisal petitions and premium awards?
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?
Investors are leaving billions of dollars on the table in Delaware appraisal actions. With over 160 mergers and consolidations eligible for appraisal each year, it is critical to implement a process to identify opportunities where your firm may be underpaid for its shares.