Judge Rules in Favor of Hedge Fund ‘Appraisal Arbitrage’ Strategy

WSJ – Hedge funds looking for higher payouts in corporate buyouts scored a win this week.

In a case stemming from the 2012 buyout of Ancestry.com Inc., a judge on Monday ruled shareholder Merion Capital LP didn’t have to prove it voted its shares against the family-tree website’s buyout to challenge the deal’s $1.6 billion price tag in court.

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