Legal experts said Tyson's prospects for nullifying the Jan. 2 merger agreement and getting back its money would improve significantly if Vice Chancellor Leo E. Strine grants the Springdale, Ark.,-based company's motion. By contrast, a victory by IBP would clear the way for a May 14 trial and give shareholders of the Dakota Dunes, S.D.-based meat packer reason to hope that Tyson will have to close the deal. Tyson filed first in their own backyard and IBP is obviously concerned about bias.
Judges can be outcome-determinative here.
Another attorney noted that Tyson is a major employer in Arkansas and has muscle there. That could give it an edge in any litigation, he said. The judges know the local people, and they hope the judges might be more sympathetic. The stakes are high. The vice chancellor, the term used to describe a judge in the chancery court, may base his ruling on language in a Dec. 4 confidentiality agreement that requires disputes to be resolved in Delaware courts.