US: C&J Energy sale dispute moves to Delaware Supreme Court

C&J Energy Services has reportedly asked the Delaware Supreme Court to approve of its planned merger with a Bermuda-based company, rejecting claims that the merger deal was reached in secret so C&J could benefit from cheaper taxes abroad.

According to reports, C&J Energy has denied shareholder allegations that it reached a deal to sell its truck operator unit to Bermuda-based Nabors Industries without properly shopping around for competing bids. The sale is an inversion merger for C&J, which will see lower taxes by relocating its headquarters to Bermuda.

Shareholders sued C&J over the deal, and the Delaware Chancery Court has ordered the company to allow a shareholder vote on the deal. C&J, however, has asked the state’s top court to throw out the injunction, claiming that Delaware law does not always “entitle stockholders to a particular sales process or require a board to shop a company” in a certain way.

C&J, which inked the sale for $2.86 billion, filed its argument with the Delaware Supreme Court on Wednesday, reports say.

Full content: Bloomberg

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