Harwood Feffer LLP ( www.hfesq.com) 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV