On October 16, 2011, El Paso agreed to sell itself to Kinder Morgan for just over $21 billion. Shareholders filed suit, asserting the process was tainted by conflict and that a higher cost might be obtained. Delaware Chancellor Leo Strine in his view expressed serious concerns with El Paso advisor Goldman Sachs and El Paso CEO Douglas Foshee conducted themselves in the process, and agreed against the plaintiffs on the conflicts.
The case examines these conflicts, the perspective of their effects on the outcome of Strine, and also the reason he was not able to allow the plaintiff's request, instead permitting the amalgamation vote to continue. The case scenario is a addendum case to "Barclays Capital and Sale of Del Monte Foods," HBS No. 313-036. Analyzes conflicts of interest among financial advisors and direction of El Paso to Kinder Morgan in the 2011 sale.
PUBLICATION DATE: July 25, 2012 PRODUCT #: 313021-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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