Akorn sinks after Delaware high court allows Fresenius to kill deal

Shares of Akorn (AKRX) are dropping after Delaware's Supreme Court upheld a lower court ruling that allowed Fresenius SE (FSNUY) to terminate its planned $4.3B buyout of the generic drugmaker. "The factual record adequately supports the Court of Chancery's determination...that Akorn had suffered a material adverse effect" of the merger agreement that "excused any obligation on Fresenius's part to close," the high court stated in an opinion today. It added, "Likewise, we conclude that the record adequately supports the Court of Chancery's declaration that Fresenius properly terminated the merger under Section 7.01(c)(i) because Akorn's breach of its regulatory representations and warranties gave rise to an MAE and Fresenius had not itself engaged in a prior, material breach of a covenant that would have prevented Fresenius from exercising its immediate termination right under the Merger Agreement." Shares of Akorn are down 34%, or $1.89, to $3.70 following the court's decision. Fresenius is down 16% to $11.37 in late morning trading after saying earlier today that its 2020 targets would not be reached. Reference Link