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Chancery Court Grants Limited Reargument of Metromedia Appraisal Decision

By Francis G. X. Pileggi, Esq.

In Re Appraisal of Metromedia International Group, No.3351-CC (Del. Ch., April 28, 2009), read letter decision here.

Kevin Brady, a highly respected Delaware litigator, provides us with the benefit of his following review of this Delaware Chancery Court case:

Chancellor Chandler granted Petitioner's Motion for Reconsideration of the Court's April 16, 2009 post-trial appraisal decision where the Court determined that the fair value of respondent's Metromedia International Group, Inc. preferred shares on the merger date was $38.92 per share.  The original opinion of April 16 was highlighted on this blog here.

Petitioner filed a Motion for Reconsideration pursuant to Chancery Court Rule 59(f) and the Court noted that in the briefing, the Respondent had "gloss[ed] over the fact that it agreed with petitioners that the $7.91 conversion price ... should be inserted into Section 8(a) to calculate the conversion ratio." The Court permitted the parties one week to submit up to a 10-page brief focused on "how they initially analyzed the interaction between Sections 8(g), 8(a), and 5 to come to the conclusion that the conversion price in Section 5.1 ($7.91) should be substituted into the conversion formula in Section 8(a) to yield a ratio of 10.038." The Chancellor noted that he did not "grant this opportunity lightly" but that he believed that the issue was "ripe for reargument" on a narrow issue.

 

Full post as published by Delaware Corporate and Commercial Litigation Blog on April 29, 2009 (boomark / email).