Take Care In The Single-Bidder Sale Process

Law360, New York (May 31, 2013, 5:43 PM EDT) -- In a recent decision, the Delaware Court of Chancery held that the plaintiff had demonstrated a reasonable likelihood that the single-bidder sale process undertaken by the target's board of directors did not satisfy the board's duties to maximize stockholder value, i.e., its Revlon duties. In Koehler v. NetSpend Holdings Inc.,[1] Vice Chancellor Sam Glasscock expressly endorsed the permissibility of single-bidder processes in sale of control transactions, but found that the remainder of the sale process resulted in the board's failure to adequately inform itself as to...
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