Delaware Business Litigation Report

Court Of Chancery Creates Unique Remedy

In re Del Monte Foods Company Shareholders Litigation, C.A. 6027-VCL (February 14, 2011)

This is an important decision if only for the creative remedy that the Court came up with to deal with the breach of faith by a target's investment bank.  In effect, the investment bank was willing to sell out its client to get a piece of the buy-side financing.  The Court enjoined the deal for 20 days to let a competing bid emerge while at the same time not killing a deal that the target's stockholders might want.

The decision gives guidance to advisers on the proper conduct they should be expected to follow.

Share