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Question
Big Blow Bubble Gum, Inc., decided to merge with its subsidiary, Not-So-Big Bubble Gum, Inc. Big Blow owned 95 percent of the stock of Not-So-Big. The board of directors of each firm agreed on a short-form merger. There was no evidence of fraud on the part of the directors or the corporation. When Bob and other minority shareholders of Not-So-Big heard about the merger and the exchange ratio of their stock, they sued Big Blow for breaching its fiduciary duty. Based on the decision in Case 40.2, Glassman v. Unocal Exploration Corp., the court in this case would most likely rule that Bob was entitled toa. punitive damages, based on Big Blow's breach of its fiduciary duty.
b. an appraisal of his shares, to determine whether fair value was given for them.
c. dissolution of the corporation.
d. nothing.
Answer
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