493 A.2d 946 (Del. 1985)

Unocal Corp. v. Mesa Petroleum Co.

Unocal established Delaware's enhanced-scrutiny framework for takeover defenses: the board must first show reasonable grounds for perceiving a threat to corporate policy and effectiveness, and then show that the response was proportionate to that threat.

Holding

Unocal established Delaware's enhanced-scrutiny framework for takeover defenses: the board must first show reasonable grounds for perceiving a threat to corporate policy and effectiveness, and then show that the response was proportionate to that threat.

Issues

hostile-takeover defensesenhanced scrutinyboard conflict of interest