$16 Billion Jarden-Newell Merger Was Fairly Priced, Judge Says

A judge has rejected an attempt at “appraisal arbitrage” by Jarden Corp. investors who challenged the $16 billion price Newell Rubbermaid Inc. paid for it in a 2016 buyout.

The petition for appraisal claimed the $59-per-share deal undervalued Jarden. It was filed in Delaware Chancery Court by four hedge funds that invested in Jarden after the tie-up was announced in 2015.

They sought an order requiring Jarden to make up the difference between the deal price and its true value at the time, which they pegged at $71.35 per share, using a “discounted cash flow” analysis. That would mean the ...