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Recent MFW-Related Developments in Delaware Courts | Skadden, Arps, Slate, Meagher & Flom LLP


In 2014, the Delaware Supreme Court’s landmark
Kahn v. M&F Worldwide Corp.
MFW) decision established that the deferential business judgment standard of review could apply to controlling stockholder “squeeze-out” mergers under certain circumstances. Six necessary conditions must be satisfied for a transaction to obtain business judgment review under
MFW: (i) the transaction is conditioned
ab initio, or “from inception,” on the approval of a special committee and a majority-of-the-minority majority vote; (ii) the special committee is independent; (iii) the special committee is empowered to freely select its own advisers and to say no definitively; (iv) the special committee meets its duty of care in negotiating a fair price; (v) the vote of the minority is informed; and (vi) there is no coercion of the minority. ....

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