HILLS STORES CO. v. BOZIC

Civil Actions Nos. 14527, 14460, and 14787.

769 A.2d 88 (2000)

HILLS STORES COMPANY, et al., Plaintiffs, v. Michael BOZIC, et al., Defendants. Gayle Dolowich, et al., Plaintiffs, v. Chaim Y. Edelstein, et al., Defendants. Peter M. Fusco, et al., Plaintiffs, v. Chaim Y. Edelstein, et al., Defendants.

Court of Chancery of Delaware, New Castle County.

Decided: February 22, 2000.


Attorney(s) appearing for the Case

David C. McBride, Esquire and Martin S. Lessner, Esquire of Young Conaway Stargatt & Taylor, Wilmington, DE, of Counsel: Alan R. Friedman, Esquire, Jonathon M. Wagner, Esquire, and Elizabeth Wolstein, Esquire, of Kramer Levin Naftalis & Frankel, New York, NY, Attorneys for Plaintiffs in C.A. No. 14527.

Joseph A. Rosenthal, Esquire of Rosenthal, Monhait, Gross & Goddess, Wilmington, DE, for Plaintiffs in C.A. Nos. 14460 and 14787.

Kevin G. Abrams, Esquire, Raymond J. DiCamillo, Esquire, Thad J. Bracegirdle, Esquire, of Richards, Layton & Finger, Wilmington, DE, of Counsel: John D. Donovan, Jr., Esquire, Robert G. Jones, Esquire, Alexandra D. Furth, Esquire, of Ropes & Gray, Boston, for Defendants.


OPINION

STRINE, Vice Chancellor.

In this case, the winning slate in a June 1995 proxy contest has caused the plaintiffs, the Hills Stores Company ("Hills") and its subsidiary Hills Department Stores Company ("HDS"), to sue the former members of the Hills board. The winning slate was proposed by Dickstein Partners, an investment fund that promised either to buy all of the shares of Hills for $22 in cash and $5 in junk bonds per share or to sell Hills to a...

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