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Summaries and analysis of recent Delaware court decisions concerning business-related litigation.

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Court of Chancery Adopts New Approach For Insurance Company Appraisal

Posted In Appraisal

Highfields Capital LTD. v. AXA Financial Inc., C.A. No. 804-VCL (August 17, 2007).

This decision illustrates the point that in an appraisal proceeding the  type of business involved may lead to a different approach to valuation. Typically, Delaware courts use the discounted cash flow method to set an appraisal value. Here, however, the Court held that a combined sum of the parts and shared synergies analysis was more appropriate for an insurance company valuation.