Excerpt from Practical Guidance

Blockchain Share Tracing Can Change Appraisal Arbitrage

By Christopher Kelly, Mathew Golden and David Hahn (March 28, 2018, 12:57 PM EDT) -- Many in the securities industry are excited about the benefits that may come with the use of blockchain technology, including its potential to make transaction processing and record-keeping more accurate, expeditious, transparent and secure. Appraisal arbitrageurs, however, may be among the few industry participants that are not quite so enthusiastic about this advanced technology, because it could make possible the tracing of trades and votes of shares of corporations being acquired by merger. Provenance is one of the primary facilities of blockchain technology, and it may someday require appraisal arbitrageurs to ensure — and prove in court — that the shares for which they seek appraisal were not voted in favor of the merger. ...

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