The Harvard Law School Corporate Governance Blog » Appraisal Arbitrage: Will It Become a New Hedge Fund Strategy?

Appraisal Arbitrage: Will It Become a New Hedge Fund Strategy?

Posted by Chares M. Nathan, Latham & Watkins LLP, on Wednesday May 23, 2007 at 10:58 pm

I have recently prepared this M&A Deal Commentary, Appraisal Arbitrage: Will It Become a New Hedge Fund Strategy?, explaining that the recent decision in the Transkaryotic shareholder litigation may spawn a new “market” in appraisal rights that will allow purchasers of shares after the record date to bring appraisal actions. As the Commentary notes, the decision raises, for the first time, the specter of arbitrage in appraisal rights.