Newman Ferrara LLP has begun an investigation into potential claims against the board of directors of Union Drilling, Inc. (“Union Drilling”) (Nasdaq: UDRL) concerning the proposed acquisition of Union Drilling by Sidewinder Drilling Inc. (“Sidewinder”).
On September 25, 2012, Union Drilling announced that it had entered into an agreement and plan of merger to be acquired by Sidewinder in an all-cash tender offer valued at approximately $242 million. Under the terms of the agreement, Union Drilling’s shareholders will receive $6.50 in cash for each share of Union Drilling stock owned.
The $6.50 per share offer price would offer Union Drilling’s shareholders a premium of only 6% on the closing price of Union Drilling stock on September 24, 2012, the day before the deal was announcement. Union Drilling common stock has traded at above the deal’s offer price as recently as September 21, 2012, when it traded at $6.69 per share. Union Drilling’s stock has risen 40% in the past three months. The proposed deal values Union Drilling at $6.50 per share, which constitutes only 76% of Union Drilling’s reported June 30, 2012 book value of $8.55 per share.
Union Drilling’s Board of Directors has unanimously approved the proposed acquisition which is expected to close before the end of 2012.
Newman Ferrara LLP’s investigation concerns whether Union Drilling’s’ Board of Directors has breached its fiduciary duties to act in the best interests of Union Drilling’s shareholders and to take all necessary steps to ensure that Union Drilling’s’ shareholders receive the maximum value readily available for their shares of Union Drilling’s common stock.
Concerned investors are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or
to discuss this investigation, their rights, or potential remedies.
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