Court Of Chancery Creates Unique Remedy
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.