ETFs & Funds
Home›ETFs & Funds›Hedge Funds›AQR seeks higher valuation in Clearwater appraisal case
AQR seeks higher valuation in Clearwater appraisal case
The fund says its Delaware petition reflects alleged flaws in the sale process and price, after shareholders received $24.55 a share on the June close.
AQR Capital Management has filed a petition in Delaware’s Court of Chancery challenging the valuation behind the $8.4 billion take private of Clearwater Analytics Holdings, according to a Hedgeweek writeup citing Bloomberg data.
The transaction closed in June, with shareholders paid $24.55 a share. AQR said funds it manages held about 3.3 million Clearwater shares worth roughly $81.3 million based on the deal consideration, and it argued shortcomings in the sale process and transaction price meant shareholders did not receive fair value.
AQR’s lawyers alleged conflicts around the deal prevented the company from maximizing value for unaffiliated public investors. The firm’s move also highlights renewed interest in appraisal arbitrage, a strategy where investors buy shares after an acquisition announcement and ask a court to determine whether the agreed deal price reflects fair value.
Appraisal claims can potentially yield any difference between the court-determined value and the takeover price, plus applicable interest. The case comes amid changes to Delaware corporate law, and AQR has challenged deal consideration in multiple other transactions since last year, the report said, including bids for Endeavor Group, Skechers USA, and Select Medical.