Law360, New York (January 2, 2013, 3:53 PM EST) -- In a second Chancery transcript ruling on the subject in recent weeks, Chancellor Leo E. Strine Jr. has made clear that Delaware has no per se rule against "Don't Ask, Don't Waive" standstill provisions (which prohibit a party subject to a standstill, including a losing bidder in an auction, from requesting a waiver from its standstill obligations). The chancellor also provided guidance for using such a provision as an "auction gavel" to secure the best price reasonably available to a target company involved in a sales process. The Dec. 17 ruling in In Re Ancestry.com is a welcome clarification that will help maintain the vitality of auctions where a target wants to incentivize bidders to come forth with their highest bid....
Law360 is on it, so you are, too.
A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.
