Delaware Supreme Court Upholds Decision Permitting Energy Transfer To Exit Williams Merger

The Delaware Supreme Court recently affirmed a lower court’s decision allowing Energy Transfer Equity to abandon a planned merger with Williams Cos. based on ETE’s failure to obtain a tax opinion from outside counsel, which was a contractual condition to closing. The decision sheds light on how Delaware courts will view parties’ obligation in an M&A agreement to use "reasonable best efforts" or "commercially reasonable efforts.” Read more.