Fidelity National Bought LPS for Fair Price, Del. Court Says

Fidelity National Financial Inc. paid a fair price when it acquired mortgage services provider Lender Processing Services Inc. for $3.4 billion, a Delaware judge ruled Dec. 16 (Merion Capital LP v. Lender Processing Servs. Inc., 2016 BL 418466, Del. Ch., 9320-VCL, 12/16/16).

The decision provides more guidance on when the Delaware Chancery Court will look to the deal price as evidence of a company’s fair value in an appraisal proceeding.

The $37.14 per-share merger consideration received by LPS shareholders was a reliable indicator of the company’s fair value at closing, Vice Chancellor J. Travis Laster said in a ...