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HART HOLDING v. DREXEL BURNHAM LAMBERT

Civ. A. No. 11514.

593 A.2d 535 (1991)

HART HOLDING COMPANY INCORPORATED and Reeves Industries, Inc., Plaintiffs, v. DREXEL BURNHAM LAMBERT INCORPORATED, Guildford Capital, Glencoe Investors and Raleigh Investment Management, Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: February 13, 1991.

Attorney(s) appearing for the Case

Stephen E. Jenkins and Keith R. Sattesahn, of Ashby, McKelvie & Geddes, Wilmington; Richard J. Wiener, and Debra L. Brown of Cadwalader, Wickersham & Taft, New York City, of counsel, for plaintiffs.

Martin P. Tully of Morris, Nichols, Arsht & Tunnell, Wilmington; Daniel R. Murdock of Donovan, Leisure, Newton & Irvine, New York City, of counsel, for defendant Guildford Capital.

Robert K. Payson and James F. Burnett of Potter Anderson & Corroon, Wilmington, for defendant Raleigh Inv. Management.

OPINION

ALLEN, Chancellor.

In this action Hart Holding Company Incorporated and Reeves Industries, Inc. seek, inter alia, the cancellation of certain shares of Reeves common stock owned by certain of the defendants. Reeves is a Delaware corporation and its stock has a legal presence in this jurisdiction. 8 Del.C. § 169.

The gist of the complaint is that the stock in question was issued on the exercise of warrants that were obtained...

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