IN RE FIRST INTERSTATE BANCORP LITIGATION

No. 14623.

729 A.2d 851 (1998)

In re FIRST INTERSTATE BANCORP CONSOLIDATED SHAREHOLDER LITIGATION

Court of Chancery of Delaware, New Castle County.

Decided: October 7, 1998.


Attorney(s) appearing for the Case

R. Bruce McNew, of Taylor, Gruver & McNew, Greenville, of counsel: Joseph W. Cotchett, Marie Seth Weiner, of Cotchett, Pitre & Simon, Burlingame, CA, Maxwell M. Blecher, Harold R. Collins, Jr., of Blecher & Collins, P.C., Los Angeles, CA, for Plaintiff and the Class.

Steven J. Rothschild, Robert S. Saunders, of Skadden, Arps, Slate, Meagher & Flom, LLP, Wilmington, for Defendant First Interstate and the Management Directors: William S. Randall and William E.B. Siart.

Jon E. Abramczyk, of Morris, Nichols, Arsht & Tunnell, Wilmington, of counsel: Richard H. Borow, P.C., David Siegel, of Irell & Manella, LLP, Los Angeles, CA, for the Defendant Non-Management Former Directors: John E. Bryson, Jewel Plummer Cobb, Ralph P. Davidson, Myron DuBain, Don C. Frisbee, George M. Keller, Thomas L. Lee, William F. Miller, Steven B. Sample, Forrest N. Shumway, Richard J. Stegemeier and Daniel M. Tellep.

Michael D. Goldman, Stephen C. Norman, Gregory M. Johnson, of Potter, Anderson & Corroon, LLP, Wilmington; of counsel: Richard F. Ziegler, Howard S. Zelbo, of Cleary, Gottlieb, Steen & Hamilton, New York City; Brad W. Seiling, of Manatt, Phelps & Phillips, Los Angeles, CA, for Defendant First Bank System, Inc.


OPINION

LAMB, Vice Chancellor.

I. INTRODUCTION

These consolidated cases arise out of a merger agreement between defendant First Interstate Bancorp ("First Interstate")1 and defendant First Bank System, Inc. ("First Bank"),2 approved by the defendant directors of First Interstate3 on November 6, 1995. This agreement was later terminated for a more favorable transaction...

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