Fair Price in Squeeze-Out Transactions

Abstract

‘Squeeze-out” is considered as a situation, where a controlling shareholder exercises his legal right to oblige the minority shareholders of a targeted listed company to sell their shares of the target to him, which brings the target company private. This article discusses the topic of fair squeeze-out compensation from both European and US (Delaware) perspectives. The author of this paper argues that though legal settings of squeeze-outs and determination of fair compensation of squeeze-out differs from country to country, some general insights might be identified that in their own turn would allow to identify main practical and theoretical problems of protection of minority/majority shareholders’ rights related with the fair squeeze-out compensation.