San Diego, CA -- (SBWIRE) -- 08/04/2014 -- An investigation on behalf of investors, who currently hold shares of QR Energy LP (NYSE:QRE), was announced concerning whether the takeover of QR Energy LP by Breitburn Energy Partners is unfair to NYSE:QRE stockholders.
Investors who purchased shares of QR Energy LP (NYSE:QRE) and currently hold any of those NYSE:QRE shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of QR Energy LP breached their fiduciary duties owed to NYSE:QRE investors in connection with the proposed acquisition.
On July 24, 2014, Breitburn Energy Partners LP (NASDAQ:BBEP) and QR Energy, LP (NYSE: QRE) announced the signing of a merger agreement pursuant to which Breitburn will acquire QR Energy in a unit-for-unit exchange implying a transaction value of approximately $3.0 billion, including QR Energy’s existing net debt and outstanding Class C Convertible Preferred Units. Under the terms of the merger agreement, holders of QR Energy’s Common and Class B units, including those issuable upon a change in control, will receive approximately 72 million Breitburn common units, or 0.9856 of a BBEP unit for each unit of QRE held. The consideration to be received by QR Energy unitholders is valued at $22.48 per unit, based on Breitburn’s closing price of $22.81 on July 23, 2014,
However, given that certain QR Energy unitholders owning approximately 37% of the votes of the outstanding QRE units have agreed to vote in favor of the transaction and that certain holders of QRE’s Class B contingent units have agreed to reduce the outstanding number of such units by approximately 42%, subject to closing adjustments, the investigation concerns whether the offer is unfair to NYSE:QRE stockholders. More specifically, the investigation concerns whether the QR Energy 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.
QR Energy LP reported that its annual Total Revenue rose from $262.37 million in 2010 to $455.63 million in 2013 and that its Net Income of $19.88 million in 2010 rose to $60.97 million in 2013.
Shares of QR Energy LP (NYSE:QRE) grew from $15.17 per share in July 2013 to as high as $18.96 per share on July 23, 2014.
On July 31, 2014, NYSE:QRE shares closed at $20.10 per share.
Those who are current investors in QR Energy LP (NYSE:QRE) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego