US law firms to investigate claims against merger of Energy Transfer, Southern Union
US-based Briscoe Law Firm, founded by a former state prosecutor and enforcement attorney for the US Securities and Exchange Commission, and the securities litigation law firm of Powers Taylor are investigating potential legal claims against the board of directors of Southern Union related to the company’s takeover by Energy Transfer.
The merger agreement, which was announced Thirsday, involves a total value of approximately $7.9 billion.
Under the proposed merger, current Southern Union stockholders common shares will be exchanged for newly issued series B units of Energy Transfer with a value of $33/share.
The transaction is expected to close in first quarter of 2012.
The firms are investigating the fairness of the proposed transaction to Southern Union shareholders and whether the shareholders are being undercompensated for their stock.
The acquisition price represents a value of only $33.00/share to Southern Union shareholders. However, Southern Union shares traded at $33.37/share on Friday.
In addition, analysts have set the target price for Southern Union shares at $34.00/share, the law firms said.
“Because the acquisition price does not represent a substantial premium to the shareholders, we do not believe that the acquisition price is fair for Southern Union’s shareholders,” said shareholder rights attorney Willie Briscoe.
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