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Officers Face Personal Liability for Steering a Sale of Columbia Pipeline to a Preferred Buyer | Snell & Wilmer


The Delaware Court of Chancery in
In re Columbia Pipeline Group, Inc. Merger Litigation  denied a motion to dismiss claims for fiduciary duty breach in the sale of Columbia Pipeline Group, Inc. (“Columbia”). The Court found that the plaintiff stockholders’ allegations supported the inference that Columbia’s CEO and Chairman Robert Skaggs, Jr. and CFO Steven Smith breached their fiduciary duty of loyalty by favoring TransCanada Corporation in the sale of Columbia.
Background of the Transaction
The litigation arose from the sale of Columbia by its board of directors (the “Board”). Columbia, with its primary asset being a gas pipeline, sought to exploit a production boom. Skaggs and Smith planned to retire in 2016, and they enjoyed as part of their compensation packages lucrative change-in-control arrangements, which would provide greater benefits if the company was sold before their retirement. A decline in commodity prices pushed Columbia’s stock down, m ....

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Investegate |Competition and Mkts Announcements | Competition and Mkts: Merger Update: Graco / Hi-Tech


 
The CMA has decided, on the information currently available to it,
not to refer
the following merger to a Phase 2 investigation under the provisions of the Enterprise Act 2002:
 
 
The text of this decision will be placed on the Competition and Markets Authority s web site at
https://www.gov.uk/cma-cases
 
as soon as is reasonably practicable.
 
 
For Publicity:
The full title of the Merger Case:
Anticipated acquisition by Graco BV of Hi-Tech Spray Equipment, S.A.
The SIC code: 20301 - Manufacture of paints, varnishes, and similar coatings, mastics and sealants
The affected market: chemicals
 
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms ....

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Developments in Delaware Corporation Law | Skadden, Arps, Slate, Meagher & Flom LLP


To embed, copy and paste the code into your website or blog:
The Delaware Court of Chancery’s docket exploded with expedited “broken” deal litigation in 2020, driven by the impact of COVID-19. Beyond pandemic-related merger litigation, stockholder plaintiffs remained focused on claims involving controlling stockholders and increased focus on claims against officers for breaches of the duty of care. There were also significant developments in connection with stockholder statutory books-and-records requests.
Broken Deals
Transaction participants in 2020 faced extraordinary and unprecedented circumstances due to COVID-19. In addition to the crisis’ uncertain economic impact, many companies faced employee health concerns and government-mandated shutdowns of core business operations, among other things. (See “US M&A Outlook: Rebounding Market Fuels Optimism for Deal Activity in 2021.”) As merger parties grappled with the pandemic and its impact on pending deals, ....

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