A lawsuit was filed for investors in shares of PVR Partners LP (NYSE:PVR) in effort to halt the proposed takeover and NYSE:PVR stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/29/2013 -- An investor, who currently hold shares of PVR Partners LP (NYSE:PVR), filed a lawsuit in effort to halt the proposed takeover of PVR Partners LP by Regency Energy Partners LP for $28.68 per NYSE:PVR share.
Investors who purchased shares of the PVR Partners LP (NYSE:PVR) and currently hold any of those NYSE:PVR shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:PVR stockholders arising out of the attempt to sell PVR Partners LP too cheaply via an unfair process to Regency Energy Partners LP.
October 10, 2013, Regency Energy Partners LP (NYSE: RGP) and PVR Partners LP announced that their respective boards of directors have approved a merger agreement, pursuant to which Regency Energy Partners LP will acquire PVR Partners LP. This acquisition will be a unit-for-unit transaction plus a one-time cash payment to PVR Partners LP unitholders that collectively imply a value today for PVR Partners LP of approximately $5.6 billion, including the assumption of net debt of $1.8 billion. Under the terms of the agreement, holders of PVR Partners LP common units, Class B Units and Special Units will receive 1.020 common units of Regency Energy Partners LP for each PVR Partners LP unit held.
In addition, PVR Partners LPunitholders will receive a one-time cash payment at closing of the merger estimated to be approximately $40 million in the aggregate. The consideration to be received by PVR Partners LP unitholders is valued at $28.68 per common unit based on Regency’s closing price as of October 9, 2013.
However, the plaintiff claims that the offer is too low and undervalues PVR Partners LP. Indeed shares of PVR Partners LP traded as recently as July 19, 2013, as high as $28.93 per share. In addition, PVR Partners LP reported that its annual Total Revenue rose from $654.70 million in 2009 to over $1 billion in 2012. Shares of PVR Partners LP (NYSE:PVR) grew from as low as $9.55 per share in March 2009 to as high as $28.93 per share in July 2013.
In addition, the plaintiff alleges that the process is unfair to NYSE:PVR stockholders as well. The plaintiff claims that the defendants breached their fiduciary duties by agreeing to several deal protection devices such as a no-solicitation and a matching rights provision.
On Oct. 24, 2103, NYSE:PVR shares closed at $26.00 per share.
Those who are current investors in PVR Partners LP (NYSE:PVR) and purchased their PVR Partners LP units prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego