The long-established practice of providing shareholders with a single one-line fairness opinion from the company's financial advisers on a proposed sale or merger has been challenged by a precedent-setting decision from an unlikely place: the Court of Appeal of Yukon.
InterOil Corp., which is incorporated in the Yukon, had its acquisition by ExxonMobil recently blocked by the Yukon appellate court, which cited a number of red flags in the deal.
Major law firms are now on the alert; and while this deal may yet go through, the legal and governance legacy may last longer.
Lexpert contributor Sandra Rubin reports at www.lexpert.ca.
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