Settlement in Del Monte’s closely-watched
shareholder litigation does not mark the end of stapled finance
or winning bidder finance, but US counsel predict market
expectation to shift away from banks working both sides of
Earlier this month the company and its financial adviser
agreed to an $89.4 million settlement of shareholder claims
arising from Del Monte’s buyout led by KKR.
Shareholders alleged the board breached its fiduciary duty in
the way it allowed Barclays Capital, Del Monte’s
financial adviser in the sale, to finance the deal.
The settlement amount, to be divided between Barclays and
Del Monte, is one of the largest ever in Delaware shareholder
litigation and follows a February court ruling where, in the
course of granting an injunction on the sale, the court