Fried Frank Discusses When Appraisal Is Likely to Be Below the Deal Price

Since the Delaware Supreme Court issued its landmark Dell appraisal decision in December 2017, the Delaware courts have issued three appraisal decisions—Verition Partners v. Aruba Networks (Feb. 15, 2018), In re Appraisal of AOL Inc. (Feb. 23, 2018), and In re Appraisal of SWS Group (affirmed by the Delaware Supreme Court Feb. 23, 2018). In Dell, the Supreme Court held that, in the case of an arm’s-length merger with a “robust” sale process, the deal price is generally the best “proxy” for appraised fair value and should be given “heavy, if not determinative weight” in determining fair value. … Read more