In 2010, Del Monte — publicly traded and one of the largest US canned food producers — agreed to be bought out by a consortium of three private equity funds led by KKR. Del Monte was advised by Barclays, which had risen as an M&A adviser after purchasing Lehman's investment banking business. As is common, the buyout triggered a shareholder lawsuit; as is not so common, Del Monte put out a supplemental proxy statement announcing that in the lawsuit Del Monte had learned several facts about the intentions of Barclays and Del Monte's senior managers.
The case encourages participants to explore the practical consequences of legal review of public company buyouts, the legal duties of investment banks to their clients, and the potential conflicts of interest faced by boards, managers, and investment banks in such transactions.
Mergers & Acquisitions, Shareholder Lawsuits, Conflicts of Interest, Corporate and Securities Law, Ethics
Geographic: United States
Industry: Consumer Packaged Goods
Event Year Begin: 2010