The Delaware Supreme Court is going to be hearing arguments soon in the case of Airgas vs. Air Products. In its briefs, as well as in oral argument before the Chancery Court, Airgas used our academic work on staggered board as evidence for its position. However, our academic articles, and the empirical evidence put forward in them, support the opposite position.

The case before the Delaware courts arose from Air Products’ unsolicited offer for Airgas. Facing opposition from Airgas to its offer, Air Products ran a competing slate for the August 2010 annual meeting and was able to replace one-third of the directors. (Airgas has a staggered board and thus only one-third of its directors came up for re-election at that annual meeting.) Air Products also succeeded in getting majority support for passing a bylaw moving up Airgas’ next annual meeting to January 2011, thus creating the possibility that another one-third of the directors could be replaced then.

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