In re Orchid Cellmark Inc. S'holder Litig., C.A. No. 6373-VCN (Del. Ch. May 12, 2011) The Delaware Court of Chancery recently addressed an issue of particular significance to M&A practitioners: Where is the point beyond which deal protection devices become invalid? Although the court found that the deal protection devices at issue were reasonable under the circumstances, it noted that "one of these days some judge is going to say 'no more.'" Perhaps in the future, this remark will be recognized in retrospect as a warning of things to come. In the meantime, this article provides some guidance to avoid crossing this elusive line.
Orchid Board Agrees to Deal Protection Devices
Devices Were Reasonable, Individually and in the Aggregate
At What Point Are Deal Protections Too Much?
To view additional stories from Bloomberg Law® request a demo now