A lawsuit was filed for investors in shares of Crestwood Midstream Partners LP (NYSE:CMLP) in connection with the proposed takeover was announced and NYSE:CMLP stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/05/2015 -- An investor in NYSE:CMLP units filed a lawsuit in effort to halt the proposed takeover of Crestwood Midstream Partners LP by Crestwood Equity Partners LP for a value of approximately $18.76 per unit. The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:CMLP stockholders by agreeing to sell Crestwood Midstream Partners too cheaply via an unfair process to Crestwood Equity Partners LP.
Investors who purchased units of Crestwood Midstream Partners LP (NYSE:CMLP) and currently hold any of those NYSE:CMLP units have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
On May 6, 2015, Crestwood Equity Partners LP (NYSE:CEQP) and Crestwood Midstream Partners LP (NYSE:CMLP) announced the signing of a definitive agreement to merge the two partnerships. Under the terms of the merger agreement, Crestwood Midstream Partners LP (NYSE:CMLP will merge with a newly formed subsidiary of Crestwood Equity Partners LP in a merger in which Crestwood Midstream Partners LP (NYSE:CMLP) unitholders will receive 2.75 units of Crestwood Equity for each unit of Crestwood Midstream they own. C Crestwood Midstream Partners LP (NYSE:CMLP) unitholders will receive a value of approximately $18.76 for each NYSE:CMLP unit they own.
However, the plaintiff claims that the proposed consideration NYSE:CMLP unitholders will receive is grossly inadequate and undervalues Crestwood Midstream Partners LP. Indeed, at least one analyst has set the high target price for NYSE:CMLP units at $26.00 per share and NYSE:CMLP units traded as recently as April 2014 as high as $24.07 per share. Crestwood Midstream Partners LP reported that its annual Total Revenue rose from $163.20 million in 2011 to over $2.56 billion in 2014. Shares of Crestwood Midstream Partners LP (NYSE:CMLP) traded during 2013 as high as $25.06 per share. In addition, the plaintiff claims that the process is also unfair to NYSE:CMLP stockholders
On August 3, 2015, NYSE:CMLP units closed at $9.55 per share.
Those who are current investors in Crestwood Midstream Partners LP (NYSE:CMLP) 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