A lawsuit was filed for investors in shares of PAA Natural Gas Storage, L.P. (NYSE:PNG) in effort to stop the proposed takeover and NYSE:PNG stockholders should contact the Shareholders Foundation.

San Diego, CA -- (SBWire) -- 09/17/2013 --An investor, who currently hold shares of PAA Natural Gas Storage, L.P. (NYSE:PNG), filed a lawsuit in effort to halt the proposed takeover of PAA Natural Gas Storage, L.P. by Plains All American Pipeline, L.P. for $22.74 per NYSE:PNG share.

Investors who purchased shares of the PAA Natural Gas Storage, L.P. (NYSE:PNG) and currently hold any of those NYSE:PNG 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:PNG investors arising out of the attempt to sell PAA Natural Gas Storage, L.P. too cheaply via an unfair process to Plains All American Pipeline.

On August 27, 2013, PAA Natural Gas Storage, L.P. (NYSE:PNG) announced that the independent directors of the board of directors of PAA Natural Gas Storage, L.P.'s general partner received a proposal from Plains All American Pipeline, L.P. (NYSE: PAA), whereby Plains All American Pipeline, L.P. would acquire all of PAA Natural Gas Storage, L.P.'s outstanding publicly held common units through a unit-for-unit exchange. Plains All American Pipeline, L.P. is proposing consideration of 0.435 common units of Plains All American Pipeline, L.P. for each issued and outstanding publicly held PAA Natural Gas Storage, L.P. common unit in a transaction that would be structured as a merger of PAA Natural Gas Storage, L.P. with a wholly owned subsidiary of Plains All American Pipeline, L.P..

The proposed consideration represents a value per PAA Natural Gas Storage, L.P. common unit of $22.74 based on the trailing 10-day average closing price of Plains All American Pipeline, L.P.'s common units through August 26, 2013.

However, the plaintiff claims that the $22.74 -offer is too low and undervalues the company. Indeed, at least one analyst has set the high target price for NYSE: PNG shares at $23.00 per share and that following the announcement NYSE: PNG shares jumped in the open market to $23.03 per share. Furthermore, PAA Natural Gas Storage’s financial performance improved recently. For instance, PAA Natural Gas Storage, L.P. reported that its annual Total Revenue rose from $72.18 million in 2009 to $387.66 million in 2012 and that its respective Net Income increased from $18.01 million to $73.30 million. Shares of PAA Natural Gas Storage, L.P. (NYSE:PNG) grew from $15.91 per share in October 2011 to $22.69 per share in April 2013.

In addition, the plaintiff claims that the process is also unfair to NYSE:PNG stockholders. In fact, Plains All American Pipeline, L.P. owns approximately 28.2 million common units of PAA Natural Gas Storage, L.P., which represents approximately 46% of PAA Natural Gas Storage, L.P.'s issued and outstanding common units. Plains All American Pipeline, L.P. also owns PNG's general partner, as well as all of PAA Natural Gas Storage, L.P.'s incentive distribution rights and all of its Series A subordinated units (approximately 11.9 million units) and Series B subordinated units (13.5 million units).

On August 29, 2013, NYSE:PNG shares closed at $22.73 per share.

Those who are current investors in PAA Natural Gas Storage, L.P. (NYSE:PNG) and purchased their PAA Natural Gas Storage, L.P. shares prior to the announcement, have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com