IN RE IBP, INC., SHAREHOLDERS LITIGATION

Civil Action No. 18373.

789 A.2d 14 (2001)

In re IBP, INC. SHAREHOLDERS LITIGATION. IBP, Inc., Defendant and Cross-Claim Plaintiff, and Counterclaim Defendant, v. Tyson Foods, Inc. and Lasso Acquisition Corporation, Defendants, Cross-Claim Defendants and Counterclaim Plaintiffs.

Court of Chancery of Delaware, New Castle County.

Decided: June 15, 2001.

Corrected: June 18, 2001.


Attorney(s) appearing for the Case

Joseph A. Rosenthal, Esquire, of Rosenthal, Monhait, Gross & Goddess, Wilmington, Delaware; Of Counsel: Stanley D. Bernstein, Esquire, of Bernstein Liebhard & Lifshitz, New York, New York, Attorneys for Plaintiffs.

William D. Johnston, Christian Douglas Wright, Danielle B. Gibbs, Esquires, of Young Conaway Stargatt & Taylor, Wilmington, Delaware; Of Counsel: Bernard W. Nussbaum, Peter C. Hein, Kenneth B. Forrest, Eric M. Roth, Marc Wolinsky, George T. Conway, III, Elaine P. Golin, Don W. Cruse, Jr., Esquires, of Wachtell, Lipton, Rosen & Katz, New York, New York, Attorneys for Defendants John J. Jacobson, Jr., Wendy L. Gramm, Martin A. Massengale, Michael L. Sanem and Jo Ann R. Smith, and Defendant and Cross-Claim Plaintiff and Counterclaim Defendant IBP, Inc.

Anthony W. Clark, Robert S. Saunders, Martina Bernstein, Julie A. Tostrup, Kara R. Yancey, Darryl A. Parson, Esquires, of Skadden, Arps, Slate, Meagher & Flom, Wilmington, Delaware; of Counsel: Matthew R. Kipp, Vincent P. Schmeltz III, Ryan J. Rohlfsen, Cyrus Amir-Mokri, Esquires, of Skadden, Arps, Slate, Meagher & Flom; James B. Blair, Esquire, of Law Offices of James B. Blair, Springdale, Arkansas; Jennifer Hendren, Esquire, of Hendren Law Firm, Fayetteville, Arkansas; Kenneth R. Shemin, Esquire, of Shemin Law Firm, Fayetteville, Arkansas; Ruth Ann Wisener, Esquire, of Conner & Winters, Fayetteville, Arkansas; Attorneys for Defendants and Counterclaim Plaintiffs Tyson Foods, Inc. and Lasso Acquisition Corporation.


OPINION

STRINE, Vice Chancellor.

This post-trial opinion addresses a demand for specific performance of a "Merger Agreement" by IBP, Inc., the nation's number one beef and number two pork distributor. By this action, IBP seeks to compel the "Merger" between itself and Tyson Foods, Inc., the nation's leading chicken distributor, in a transaction in which IBP stockholders will receive their choice of $30 a share in cash or Tyson stock, or a combination of...

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