A lawsuit was filed by investor in unit of Regency Energy Partners LP (NYSE:RGP) in effort to stop the proposed takeover and NYSE:RGP unitholders should contact the Shareholders Foundation.

San Diego, CA -- (SBWire) -- 02/11/2015 --An investor, who currently holds units of Regency Energy Partners LP (NYSE:RGP), filed a lawsuit in effort to halt the proposed takeover of Regency Energy Partners LP by Energy Transfer Partners, L.P.

Investors who purchased units of Regency Energy Partners LP (NYSE:RGP) and currently hold any of those NYSE:RGP units have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:RGP stockholders by agreeing to sell Regency Energy Partners LP too cheaply via an unfair process to Energy Transfer Partners, L.P.

On January 26, 2015, Energy Transfer Partners, L.P. (NYSE: ETP) and Regency Energy Partners LP (NYSE: RGP) ("Regency") announced they have entered into a definitive merger agreement. This merger will be a unit-for-unit transaction, plus a one-time cash payment to Regency Energy Partners LP (NYSE:RGP) unit holders, that collectively implies a value for Regency of approximately $18.0 billion, including the assumption of net debt and other liabilities of $6.8 billion. Under the terms of the merger agreement, the unitholders of Regency Energy Partners LP (NYSE:RGP) will receive 0.4066 Energy Transfer Partners, L.P. (NYSE: ETP) common units and a cash payment of $0.32 for each common unit of Regency Energy Partners LP (NYSE:RGP), implying an all-in price for Regency Energy Partners LP (NYSE:RGP) common units of $26.89 per unit based on ETP's closing price on January 23, 2015.

However, the plaintiff claims that given Regency Energy Partners' recent strong performance as well as its future growth prospects, the proposed consideration unitholders will receive is grossly inadequate and undervalues Regency Energy Partners LP. Indeed, at least one analyst has set the high target price for NYSE RGP units at $34.00 and NYSE RGP units traded as recently as September 2014 as high as $33.57. Furthermore, Regency Energy Partners LP reported that its annual Total Revenue rose from over $1.22 billion in 2010 to over $2.52 billion in 2013. Units of Regency Energy Partners LP (NYSE:RGP) traded as high as $33.11 per share in September 2014.

In addition, the plaintiff claims that the process is also unfair to NYSE:RGP unitholders. The plaintiff alleges that the defendants have exacerbated their breaches of fiduciary duty by agreeing to lock up the Merger with deal protection devices, such as a strict no-solicitation provision, a matching rights provision, and a $450 million termination fee provision, that preclude other bidders from making a successful competing offer for Regency Energy Partners LP.

On February 2, 2015, NYSE:RGP units closed at $25.81.

Those who are current investors in Regency Energy Partners LP (NYSE:RGP) units have certain options and should contact the Shareholders Foundation.

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