Sheffield v. Consolidated Foods Corp.

CARLTON, Justice.

Plaintiffs filed a complaint alleging violation of the North Carolina Tender Offer Disclosure Act, Chapter 78B of the General Statutes, by defendant Consolidated Foods Corporation, a Maryland corporation, in connection with its takeover of Hanes Corporation, formerly a North Carolina corporation. The trial court allowed summary judgment for defendants. We hold that the Tender Offer Disclosure Act does not apply to purchases of stock on the open market and affirm.

I

A merger of Hansco, Inc., a wholly owned North Carolina subsidiary of Consolidated Foods Corporation, and Hanes…