Shareholder Rights in Mergers and Acquisitions: Are Appraisal Rights Being Abused?
11 Pages Posted: 8 Jan 2017
Date Written: January 2, 2017
Appraisal rights grant dissenting shareholders in an acquisition the right to petition the court to determine the value of their shares. These rights can protect shareholders from acquisitions below fundamental value or can be abused by opportunistic investors. We examine the use of appraisal rights and find the evidence is most consistent with appraisal rights functioning as recourse when the target firm is sold below fundamental value.
Keywords: Appraisal Rights, Mergers and Acquisitions, Takeover Law
JEL Classification: G34, K22
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