San Diego, CA -- (SBWIRE) -- 06/12/2012 -- An investigation on behalf of investors in NASDAQ:CRED shares was announced concerning whether the offer by Forestar Group Inc. to acquire CREDO Petroleum Corporation at $14.50 per share and the takeover process are unfair to investors in NASDAQ:CRED shares.
Investors who purchased shares of CREDO Petroleum Corporation (NASDAQ:CRED) prior to June 4, 2012, and currently hold any of those NASDAQ:CRED shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of CREDO Petroleum Corporation breached their fiduciary duties owed to NASDAQ:CRED investors in connection with the proposed acquisition.
On June 4, 2012, CREDO Petroleum Corporation (NASDAQ: CRED) announced that its board of directors has unanimously approved an agreement pursuant to which Forestar Group Inc. (NYSE: FOR) will acquire all of the outstanding shares of Credo Petroleum Corporation’s common stock for $14.50 per NASDAQ: CRED share, or approximately $146 million in the aggregate.
Following the takeover news shares of CREDO Petroleum Corporation (NASDAQ:CRED) jumped from $10.86 per share on June 1, 2012 to $14.35 per share on June 4, 2012.
However, CREDO Petroleum’s performance improved recently. It reported that its annual Revenue rose from $10.07million in 2009 to $16.77million in 2011 and its Net Loss of $14.45million in 2009 turned into a Net Income of $3.52million in 2011.
Therefore the investigation for NASDAQ:CRED investors concerns whether the proposed transaction is unfair to CREDO Petroleum stockholders. Specifically, the investigation focuses on whether the CREDO Petroleum Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in CREDO Petroleum Corporation (NASDAQ:CRED) and purchased their CREDO Petroleum Corporation shares 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