Opinion ID: 2395587
Heading Depth: 1
Heading Rank: 10

Heading: The SFD Board adequately disclosed the source of the self-tender offer

Text: The SFD proxy statement stated that Yucaipa proposed the $36 per-share price used in the self-tender offer. Plaintiff argues that this constituted inadequate disclosure of how the board arrived at the price, in light of evidence suggesting alternative sources. For instance, the record contains the testimony of one of SFD's outside directors that the tender-offer price derived from a Goldman, Sachs valuation of SFD, rather than simply from Yucaipa's suggestion. On the other hand, the record is replete with testimony that the price was Yucaipa's and not Goldman's. The Court of Chancery made a judgment that the SFD Board made adequate disclosure. [27] We have deferred to the trial court's finding that the tender-offer price was proposed by Yucaipa and not SFD's investment bankers. Accordingly, we affirm the Court of Chancery's dismissal of this claim, as plaintiff has offered no evidence that the SFD Board's disclosure of that fact is inadequate. The judgment of the Court of Chancery is affirmed.