The law firm of Federman & Sherwood has initiated an investigation into Houston-based GenOn Energy, Inc. (NYSE:GEN) (“GenOn”) with respect to possible breaches of fiduciary duty by the company’s officers and directors, as well as violations of state law, in connection with the take-over bid offer by NRG Energy, Inc. (“NRG”).
On July 23, 2012, GenOn announced that it had agreed to be acquired by NRG, whereby NRG would acquire all outstanding shares of GenOn common stock in a cash offer of approximately $1.7 billion. Based upon the terms of the proposal, GenOn shareholders would receive 0.1216 shares of NRG stock for each share of GenOn they own at the time the transaction is finalized. Hypothetically, based upon the closing price of $18.05 for NRG shares as of July 20, 2012, this would result in each GenOn shareholder receiving $2.19 for each share of GenOn they own at the time of the buyout.
Federman & Sherwood is investigating whether: (1) the information being provided to GenOn shareholders makes all necessary disclosures with respect to the proposed sales transaction; (2) whether the proposed sale to NRG offers adequate long-term value to GenOn shareholders; and, (3) whether GenOn could have received a higher per share price for its shareholders had the officers and directors aggressively sought other purchasers for the company. At least one analyst has set a target price of $4.50 for GenOn common stock.
If you currently own common stock in GenOn Energy, Inc. and purchased your shares before July 23, 2012; have information to assist in our investigation of this transaction; or, have any questions or concerns regarding this notice or preservation of your rights, please contact William B. Federman. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.