Opinion ID: 2276854
Heading Depth: 1
Heading Rank: 8

Heading: Relevant Post-Merger Evidence

Text: The pre-merger Perelman Plan expressly contemplated the sale of certain Technicolor divisions during 1983 and forecast no less than $50 million in cash proceeds. [88] By December 1982, the forecast was $54 million. [89] It is undisputed that MAF actually realized $55.7 million in cash from asset sales during 1983. [90] Cinerama argues that the 1983 asset sales are the results of known pre-merger matters which are admissible as evidence to prove the merger date value of Technicolor. Cinerama submits that the actual 1983 sale proceeds represent a timely validation of the pre-merger forecast that at least $50 million would be realized from asset sales. Accordingly, Cinerama submits that the Court of Chancery erred by rejecting its argument that, in this case, the appraisal process upon remand for a new trial should incorporate a projection of no less than $50 million in cash proceeds from asset sales. We have concluded that Cinerama's argument is correct. In Gonsalves I, this Court held that post-merger evidence is admissible to show that plans in effect at the time of the merger have born fruition. [91]