Frontier Oil Company v. Holly Corporation
The Delaware Court of Chancery recently ruled in favor of our client, petroleum refiner and marketer Holly Corporation, in a case concerning Holly’s 2003 merger agreement with Frontier Oil Corporation. When the merger agreement collapsed, Frontier sued Holly for breach of contract and sought over $100 million in damages. An Analysis Group team led by Managing Principal Nicholas Crew and Vice President Michael Hsu provided damages analysis in support of our testifying expert, Affiliate Robert Sherwin. Mr. Sherwin’s trial testimony focused on the estimation of the relevant costs of capital as well as other valuation issues regarding the energy businesses of the parties and the synergies that were contemplated. After an expedited trial, the Court ruled that Frontier had breached the agreement but that Holly had not, and that Holly was not liable for any damages. Both companies have the right to appeal the decision to the Delaware Supreme Court.