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

This post is by Charles M. Nathan of Latham & Watkins LLP.

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.

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