The Cornerstone Report provides several data points concerning the frequency of court awards above merger price in appraisal actions as well as the size of the premiums and distinctions between results involving public and private companies. Between 2006 and 2018, Cornerstone reports 34 appraisal cases that went to trial; 16 resulted in awards above deal price and 18 resulted in awards at or below deal price. Across all 34 cases, on average, the premium to deal price was 18%. Among the 16 cases where a premium to deal price was awarded, the average was 47%. The Cornerstone Report also provides that the results for appraisal cases differed depending on whether the target was publicly or privately held. The average premium awarded in an appraisal concerning a public corporation was 8% while those involving privately held entities was 47%. In other words, the Cornerstone Report describes substantial variation in the premiums to deal price awarded in appraisal actions.
We discussed the Cornerstone Report’s data on appraisal activity previously.