USG’s board doesn’t have to face a challenge to the US$7 billion sale price it accepted from Gebr Knauf KG in a deal pushed by Berkshire Hathaway, a Delaware judge ruled, saying the lawsuit was doomed by a charter provision shielding USG’s directors from mismanagement claims.
“It was no secret to USG’s stockholders that the board preferred to sell USG for more,” Vice Chancellor Sam Glasscock III wrote in an 87-page Chancery Court ruling Monday, August 31, reported Bloomberg Law.
In 2018, USG agreed to be acquired by Germany’s Gebr Knauf KG for US$7 billion, capping months of deal talks between the two building-materials firms and USG’s largest investor, Warren Buffett’s Berkshire Hathaway
