Thursday, May 24, 2007
Latham & Watkins has issued a thoughtful client note on the recent opinion of the Delaware Chancery Court in In re: Appraisal of Transkaryotic Therapies, Inc. In Transkaryotic, the court held that beneficial holders seeking appraisal do not have to establish how the specific shares they acquired after the record date were voted. Lathams concludes that "[t]he case will heighten the attractiveness of an investment strategy premised on assertion of appraisal rights and lead to more frequent and larger appraisal claims than previously." Professor Larry Hammersmesh disagrees.