A lawsuit was filed by investor in shares of Oiltanking Partners LP (NYSE:OILT) in effort to stop the proposed takeover and NYSE:OILT stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 12/01/2014 -- An investor, who currently holds shares of Oiltanking Partners LP (NYSE:OILT), filed a lawsuit in effort to halt the proposed takeover of Oiltanking Partners LP by Enterprise Products Partners L.P for a value of approximately $49.05 per share.
Investors who purchased shares of Oiltanking Partners LP (NYSE:OILT) and currently hold any of those NYSE:OILT 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:OILT stockholders by agreeing to sell Oiltanking Partners LP too cheaply via an unfair process to Enterprise Products Partners.
On November 12, 2014, Enterprise Products Partners L.P. (NYSE:EPD) and Oiltanking Partners LP (NYSE:OILT) announced that Enterprise Products Partners L.P. (NYSE:EPD) and Oiltanking Partners LP have entered into a merger agreement. Under the terms of the merger agreement, Oiltanking Partners would merge with a subsidiary of Enterprise Products Partners L.P. (NYSE:EPD) in a unit-for-unit exchange. Unitholders of Oiltanking Partners (other than Enterprise Products Partners L.P. and its subsidiaries) would receive 1.3 Enterprise Products Partners L.P. (NYSE:EPD) common units for each Oiltanking Partners LP common unit. Based on a closing price of $37.73 per NYSE:EPD share on November 11, 2014, shareholders of Oiltanking Partners LP (NYSE:OILT) will receive a value of $49.05 per NYSE:OILT share.
However, the plaintiff claims that the offer is too low and undervalues Oiltanking Partners LP. Indeed, at least one analyst has set a high target price of $61.00 per NYSE:OILT share and NYSE:OILT shares traded as recently as September 10, 2014 as high as $53.89 per share. Futhermore, Oiltanking Partners LP reported that its annual Total Revenue rose from $116.45 million in 2010 to $210.95 million in 2013 and that its respective Net Income increased from $37.81 million in 2010 to $117.06 million in 2013.
In addition, the plaintiff claims that the process is also unfair to NYSE:OILT investors. Indeed, a subsidiary of Enterprise Products Partners L.P, which will own a sufficient number of Oiltanking Partners common units to approve the merger on behalf of all Oiltanking Partners unitholders, has already executed a support agreement with Oiltanking Partners in which it has irrevocably agreed to consent to the merger. The plaintiff says that the defendants have exacerbated their breaches of fiduciary duty by agreeing to lock up the merger with deal protection devices that block other bidders from making a successful competing offer for Oiltanking Partners.
On November 26, 2014, NYSE:OILT shares closed at $50.82 per share.
Those who are current investors in Oiltanking Partners LP (NYSE:OILT) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego