DOVER, Del. – A Delaware judge has ruled for billionaire Ronald Perelman and other defendants in a lawsuit challenging the buyout of a banking-service holding company in which Perelman held a controlling interest.
The lawsuit challenged a 2011 deal in which Perelman’s MacAndrews & Forbes Holdings Inc., which owned 43 per cent of M&F Worldwide, bought the remaining shares it didn’t own. Some MFW shareholders argued that because Perelman stood on both sides of the deal, it had be carefully scrutinized for fairness.
The defendants noted that the deal was approved by both a special committee of independent directors and most of the minority MFW shareholders.
The judge this week granted summary judgment to the defendants, who urged the court to defer to the business judgment of MFW directors.