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Series 79: M&A, Tender Offers & Restructuring
Series 79 practice questioneasySqueeze-Out Mergers and Appraisal Rights

In a Delaware short-form merger, what remedy is available to a minority shareholder who disagrees with the merger price?

  1. ARescind the merger
  2. BForce a vote of all shareholders
  3. CBlock the merger by injunction
  4. DDemand appraisal rights and seek a judicial determination of fair value✓ Correct answer
Explanation

Why DDemand appraisal rights and seek a judicial determination of fair value

Appraisal rights allow dissenting shareholders to petition the court for a fair valuation. The trap answers distract with remedies not available in a short-form merger under Delaware law.

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