Opinion ID: 2189910
Heading Depth: 2
Heading Rank: 1

Heading: The Ivanhoe Threat

Text: This Court has recognized the coercive nature of two-tier partial tender offers. Unocal, 493 A.2d at 956. Here, not only did the Ivanhoe offer fit perfectly the mold of such a coercive device, but after reasonable investigation the offer was found by the Newmont board to be inadequate. The Vice Chancellor held that this finding of inadequacy was justified, and his conclusion is fully supported by the record. Ivanhoe Partners, 533 A.2d at 597 n. 12. Furthermore, Newmont and Gold Fields specifically recognized that Mr. Pickens, who controls Ivanhoe, had been involved in several attempts to acquire and break-up other corporations, resulting in the payment of greenmail or severe restructuring of the target companies. See, e.g., Unocal, 493 A.2d at 952, 956-57; Mesa Partners v. Phillips Petroleum Co., Del. Ch., 488 A.2d 107 (1984). The series of Ivanhoe maneuvers, including the secret acquisition of shares, the bear hug letter, the coercive partial tender offer and inadequate bid were all viewed by the defendants as classic elements of Mr. Pickens' typical modus operandi. Thus, the Newmont board could properly conclude that the Ivanhoe tender offer was not in the shareholders' best interests or those of their company. Unocal, 493 A.2d at 952, 956-57.