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United States revlonunocal

Paramount Communications Inc v Time Inc

571 A.2d 1140 (Del. 1990)
JurisdictionUnited States
CourtSupreme Court of Delaware
Year1989
StatusBinding authority

Key Principle

A board pursuing a good-faith, long-term strategic business plan is not obligated to abandon it in favour of a higher-priced hostile bid, and Revlon duties to maximise immediate stockholder value are not triggered merely because a strategic combination (such as a stock-for-stock merger) is undertaken absent a sale or break-up of the company or an inevitable change of control.

Area of Law

corporate

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