Challenge of Conflicted Merger Headed to Trial in Delaware

A master limited partnership must resolve its conflicted merger at trial since it couldn’t show the transaction conclusively received good faith special approval, a Delaware vice chancellor ruled Tuesday.

Third Coast Midstream Holdings LLC failed to show it’s entitled to a conclusive presumption that its sought-after merger with ArcLight Capital Partners LLC was appropriately approved, according to an opinion in the Delaware Court of Chancery. Vice Chancellor Morgan T. Zurn denied Third Coast’s motion for summary judgment, ruling it must face Craig R. Thomas’ class action challenge of the merger at trial.

The desired merger, which received special approval from ...