Reuters – An increasingly popular legal strategy that allows hedge funds to make potentially lucrative bets on takeover deals, and get a return even if they lose, may be about to become much less attractive.
The strategy usually involves buying stock in a Delaware-incorporated company that is being acquired and then filing a claim that gets a judge to determine the fair price for the shares in a process known as appraisal. The fund will argue in court that the deal value was unfairly low and it should be paid a higher price.
