In the News

Polygon May Curb Activist Hedge Fund Activity

Mergers & Acquisitions

December 01, 2006

Max Crane, Deputy Managing Partner of the Firm, was interviewed for a Dec. '06 Mergers & Acquisitions magazine article titled “Polygon May Curb Activist Hedge Fund Activity.” The article discusses a case in which a merger-arbitrage hedge fund requested information under Section 220 of the Delaware General Corporation Law – allowing stockholders to demand access to a company’s books and records – and the Delaware Chancery Court found the request to be lacking. According to the article, “Max Crane…agrees, saying that the Delaware courts generally support shareholder rights but ‘want to discourage Johnny-come-lately hedge funds’ that try to manipulate a company, principally for their own benefit. ‘They want to level the playing field to a place where true shareholder value can be realized. Sometimes that’s long-term value; it’s not always a short-term fix.’” The article continues, “Crane points to the ongoing battle between long-term company growth and shareholder value enhancement and making a quick buck.”