Following Tri-Star Pictures’ 1987 purchase of Coca-Cola’s Entertainment Business Sector, minority shareholders of Tri-Star alleged that Coca-Cola had used its large position in Tri-Star to engineer the transaction at an inflated price.
Retained by King & Spalding and by Morris, Nichols, Arsht & Tunnell
Following Tri-Star Pictures’ 1987 purchase of Coca-Cola’s Entertainment Business Sector, minority shareholders of Tri-Star alleged that Coca-Cola had used its large position in Tri-Star to engineer the transaction at an inflated price.
Working with William Silber of New York University, we analyzed the reactions of Tri-Star and Coca-Cola’s stock prices to the purchase announcements and reviewed comments by industry analysts at the time. Our analysis refuted plaintiffs’ contention that Tri-Star paid an inflated price for the Entertainment Business Sector. Following expert depositions, the case settled.
