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Corporations Keyed to Hazen
Farris v. Glen Alden Corp.
Citation:143 A.2d 25 (1958)
Glen Alden engaged principally in the mining of anthracite coal. In October 1957, List purchased through a wholly owned subsidiary 38.5% of Glen Alden’s outstanding stock. This acquisition enabled List to place three of its directors on the Glen Alden board. The two corporations entered into a reorganization agreement, which provided that Glen Alden is to acquire all of the assets of List. These assets include over $8,000,000 in cash held in the treasuries of List’s wholly owned subsidiaries. In consideration, Glen Alden is to issue 3,621,703 shares of stock to List. On the day of the shareholders’ meeting, plaintiff, a shareholder of Glen Alden, filed a complaint against the corporation and its officers seeking to enjoin them temporarily until final hearing, and from executing and carrying out the agreement.
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