Desirable Resistance: Kahn v. M&f Worldwide and the Fight for the Business Judgment Rule in Going-private Mergers

INTRODUCTION .......................................................................................... 643 I. THE BUSINESS JUDGMENT RULE OR ENTIRE FAIRNESS: WHY DOES IT MATTER? .................................................................................... 646 II. MFW I .................................................................................................. 648 III. MFW II ................................................................................................ 653 IV. THE EROSION OF LYNCH: HOW MFW I AND MFW II FIT INTO THE CASE LAW ....................................................................................... 655 A. The Lynch Footprint ................................................................ 655 B. The Siliconix Line of Cases ..................................................... 657 C. Cox Communications ............................................................... 659 D. Unocal ..................................................................................... 662 V. DESIRABLE RESISTANCE: WHY MFW I AND II GOT IT RIGHT .............. 662 A. Doctrinal Coherence ............................................................... 663 B. Protecting Minority Shareholders ........................................... 664 C. Changing the Landscape of Securities Litigation .................... 666 CONCLUSION .............................................................................................. 670