IN RE EL PASO CORP. SHAREHOLDER LITIGATION

Civil Action No. 6949-CS.

41 A.3d 432 (2012)

In re EL PASO CORPORATION SHAREHOLDER LITIGATION.

Court of Chancery of Delaware.

Decided: February 29, 2012.


Attorney(s) appearing for the Case

Stuart M. Grant, Esquire , Megan D. McIntyre, Esquire , Christine M. Mackintosh, Esquire , Grant & Eisenhofer P.A., Wilmington, Delaware; Christine S. Azar, Esquire , Charles B. Vincent, Esquire , Labaton Sucharow LLP, Wilmington, Delaware; Mark Lebovitch, Esquire , Jeremy Friedman, Esquire , Bernstein Litowitz Berger & Grossmann LLP, New York, New York, Ira Schochet, Esquire , Labaton Sucharow LLP, New York, New York, Attorneys for Plaintiffs.

Donald J. Wolfe, Jr., Esquire , T. Brad Davey, Esquire , Samuel L. Closic, Esquire , Potter Anderson & Corroon LLP, Wilmington, Delaware; Paul K. Rowe, Esquire , Stephen R. DiPrima, Esquire , Bradley R. Wilson, Esquire , Michael Gerber, Esquire , Benjamin D. Schireson, Esquire , Wachtell, Lipton, Rosen & Katz, New York, New York, Attorneys for Defendants Juan Carlos Braniff, David W. Crane, Douglas L. Foshee, Robert W. Goldman, Anthony W. Hall, Jr., Thomas R. Hix, Ferrell P. McClean, Timothy J. Probert, Steven Shapiro, J. Michael Talbert, Robert F. Vagt, and John L. Whitmire.

Collins J. Seitz, Jr., Esquire , Bradley R. Aronstam, Esquire , Seitz Ross Aronstam & Moritz LLP, Wilmington, Delaware; Joseph S. Allerhand, Esquire , Seth Goodchild, Esquire , Michael Bell, Esquire , Weil, Gotshal & Manges LLP, New York, New York, Attorneys for Defendants Kinder Morgan, Inc., Sherpa Merger Sub, Inc., and Sherpa Acquisition, LLC.

Gregory V. Varallo, Esquire , Raymond J. DiCamillo, Esquire , Kevin M. Gallagher, Esquire , Richards, Layton & Finger, P.A., Wilmington, Delaware; John L. Hardiman, Esquire , Sullivan & Cromwell, LLP, New York, New York; Bruce D. Oakley, Esquire , Hogan Lovells U.S. LLP, Houston, Texas, Attorneys for The Goldman Sachs Group, Inc. and Goldman, Sachs & Co.


OPINION

STRINE, Chancellor.

I.

Stockholder plaintiffs seek a preliminary injunction to enjoin a merger between El Paso Corporation and Kinder Morgan, Inc. (the "Merger").

The chief executive officer of El Paso, a public company, undertook sole responsibility for negotiating the sale of El Paso to Kinder Morgan in the Merger. Kinder Morgan intended to keep El Paso's pipeline business and sell off...

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