Joseph Lerro and John Duty v. The Quaker Oats Company, Snapple Beverage Corporation, and Thomas H. Lee

EASTERBROOK, Circuit Judge.

The Quaker Oats Company acquired Snapple Beverage Corporation for $1.7 billion in 1994. A merger agreement was signed on November 1, 1994, and a tender offer was announced to the public on November 4. Quaker Oats offered $14 in cash for each share of Snapple stock; the merger agreement contemplated the same payment per share. Investors who thought $14 too low could refuse to tender, vote against the merger, and demand appraisal under § 262 of the Delaware Corporation Law. Nonetheless, the success of the transaction was assured by the support of Thomas H. Lee, who…