Issue Date: April 6, 2009
Lyondell Wins Case On Appeal
The Delaware Supreme Court has reversed a Delaware Court of Chancery decision that Lyondell Chemical's board of directors disregarded its fiduciary duties when it accepted a $48-per-share merger offer from Access Industries in 2007. The lower court said the board failed to shop the company around to potential bidders even though Access purchased an 8.3% stake in it in May 2007, setting the stage for a probable takeover attempt. Access made a $40-per-share offer in July 2007, which Lyondell CEO Dan F. Smith negotiated up to $48. A managing director at Deutsche Bank, which Lyondell retained to look at the deal, called the price "an absolute home run," and the board approved the deal.
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