Yes, the board was in violation of the Delware law as board of directors (BOD) have no discretion to decide on low bidding partner (perceived as better option) over the highest bidder. Reason being, once two companies merge, a new entity takes place or new board of directors are appointed to take new entity to greater heights. Thus, the assumption / prediction of current BOD as to the working of future board is unrealistic, insuffiecient and injustice to the highest bidder.