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Chancellor Strine Creates Path for Business Judgment Rule Review of Controlling Stockholder-Led Buyouts

Dealmakers and their legal advisers have an important choice to make when structuring a controlling stockholder-led buyout.

30 minute read July 30, 2013 at 12:15 AM
By
Robert S. Reder
Chancellor Strine Creates Path for Business Judgment Rule Review of Controlling Stockholder-Led Buyouts

Dealmakers and their legal advisers have an important choice to make when structuring a controlling stockholder-led buyout. The first alternative is a long-form merger of the controlled corporation, requiring both controlled company board approval and a positive vote of stockholders (a “one-step transaction“).

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