This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Harwood Feffer LLP Announces Investigation Of El Paso Corp.

Harwood Feffer LLP ( is investigating potential claims against the board of directors of El Paso Corp. ("El Paso" or the "Company") (NYSE: EP) concerning the proposed acquisition of the Company by Kinder Morgan, Inc. (“Kinder Morgan”) in a transaction valued at $38 billion.

On October 16, 2011, El Paso and Kinder Morgan announced they had entered into a definitive agreement pursuant to which Kinder Morgan will acquire El Paso. Under the terms of the agreement, Kinder Morgan will acquire all outstanding shares of El Paso for approximately $26.87 per share. El Paso shareholders will receive $14.61 in cash per share plus 0.4187 shares of Kinder Morgan (valued at approximately $11.26 per El Paso share) and 0.640 Kinder Morgan warrants (valued at approximately $0.96 per El Paso share). The warrants have an exercise price of $40 and a five-year term. El Paso shareholders will be able to elect either i) $25.91 in cash, ii) 0.9635 shares of Kinder Morgan common stock, or iii) $14.65 in cash plus 0.4187 shares of Kinder Morgan common stock for each El Paso Share held. Under all circumstances, El Paso shareholders will receive the 0.640 warrants per El Paso share held, subject to proration. El Paso’s board, two members of which will join the Kinder Morgan board the close of the transaction, has agreed not to solicit competing transactions. At least one analyst has set a price target for El Paso stock of $28.00 per share.

Our investigation concerns whether the board of directors has breached its fiduciary duties by failing to adequately shop the Company and whether the board undertook a fair process and obtained fair consideration for El Paso stockholders. In light of the fact that the transaction will make Kinder Morgan the fourth largest energy company in North America, El Paso shareholders may be in a position to demand an increased premium.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs