In Highfields Capital, Ltd. v. AXA Financial, Inc., 2007 WL 2410295 (Del. Ch., Aug. 17, 2007), read opinion here, the Chancery Court rejected the expert testimony of the experts of both parties and arrived independently at its own valuation in this appraisal proceedings pursuant to Section 262 of the Delaware General Corporation Law (Title 8 of the Delaware Code), in connection with the all-cash, all-shares merger of an insurance company. In this thorough opinion, the court engaged in a lengthy analysis and reasoned that a "combined sum-of-the-parts and shared synergies analysis is the most reliable valuation methodology in this litigation." In footnote 48, the court noted that the parties’ post-trial briefs "are like two ships passing in the night, with each litigant showing an equal amount of tedium in attacking (often with good cause) every assumption used or conclusion reached by the other parties’ expert, no matter how minor."
This case can serve as a helpful tutorial on Delaware appraisal actions and the DCF as well as other valuation methods considered by the Delaware courts. Footnotes 20 through 30 contain an excellent collection of seminal Delaware cases on appraisal proceedings and the corresponding standards that the courts apply in these cases.
UPDATE: Professor Bainbridge graciously links to my post here.