San Diego, CA -- (SBWIRE) -- 05/12/2014 -- An investor who currently holds shares of Forest Oil Corporation (NYSE:FST) filed a lawsuit in effort to halt the takeover of Forest Oil Corporation by Sabine Oil & Gas LLC.
Investors who purchased shares of Forest Oil Corporation (NYSE:FST) and currently hold any of those NYSE:FST shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:FST stockholders by agreeing to sell Forest Oil Corporation too cheaply via an unfair process to Sabine Oil & Gas LLC.
On May 6, 2014, Sabine Oil & Gas LLC (“Sabine”) and Forest Oil Corporation (NYSE:FST) announced the signing of a merger agreement under which Sabine Oil & Gas LLC and Forest Oil Corporation will combine their businesses in an all-stock transaction. Under the terms of the agreement, Sabine Oil & Gas LLC and Forest Oil Corporation will combine their businesses under a newly formed holding company, Sabine Oil & Gas Corporation. As part of the transaction, each share of Forest Oilcommon stock will be converted into 0.1 of a share of Sabine Oil & Gas common stock.
However, the plaintiff claims that the offer is too low and undervalues Forest Oil Corporation.
Forest Oil Corporation reported that its annual Total Revenue declined from $605.66 million in 2012 to $44.1.67 million in 2013 while its Net Loss of over $1.28 billion in 2012 turned into a Net Income of $73.92 million in 2013. Shares of Forest Oil Corporation (NYSE:FST) traded in 2011 as high as $39.05 per share.
On May 8, 2014, NYSE:FST shares closed at $2.24 per share.
Those who are current investors in Forest Oil Corporation (NYSE:FST) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego