Chancery Tosses Challenge To $1B Essendant-Staples Merger
Law360 (January 2, 2020, 6:19 PM EST) -- A stockholder challenge to last year's $1 billion merger of office supply giants Essendant Inc. and Staples Inc. came up short in a Delaware Chancery Court dismissal ruling that found fatal troubles in each of five counts against the sellers or buyers.
Vice Chancellor Joseph R. Slights III found Monday that Essendant's stockholders failed to show that the company's top officer and directors breached their duties as fiduciaries when they terminated an all-stock merger agreement with Genuine Parts Co. in favor of a later-proposed, $12.80 per share deal with Staples and its private equity parent Sycamore Partners.
Also dismissed were aiding...
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