This Day On The Street
Continue to site
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

Acquisition Of Copano Energy, L.L.C. By Kinder Morgan Energy Partners, L.P. May Not Be In Copano Energy, L.L.C. Shareholders' Best Interests

SAN DIEGO and HOUSTON, Jan. 30, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Copano Energy, L.L.C. (NASDAQ: CPNO) by Kinder Morgan Energy Partners, L.P. (NYSE: KMP).  Copano Energy provides midstream services to natural gas producers in the United States, including natural gas gathering, compression, dehydration, treating, marketing, transportation, processing, and fractionation.   


On January 29, 2013, Kinder Morgan Energy Partners and Copano Energy announced a definitive merger agreement whereby Kinder Morgan Energy Partners will acquire all of Copano Energy's outstanding units for a total purchase price of approximately $5 billion, including the assumption of debt.  In addition, Kinder Morgan Energy Partners will acquire 100% of Eagle Ford Gathering (currently a joint venture with Copano Energy), which provides gathering, transportation, and processing services to natural gas producers in the Eagle Ford Shale.  The transaction has been approved by the board of directors of both companies and is expected to close in the third quarter 2013.

The Board of Directors' Actions May Prevent Copano Energy Shareholders from Receiving the Maximum Value for Their Stock

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Copano Energy is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in light of the proposed acquisition.  The $40.91 per share offer price is below the $41.00 target price, which has been projected by an analyst at Ladenburg Thalman & Co. since November 12, 2012.   

Further, on November 7, 2012, Copano Energy reported financial results for the third quarter 2012, which reflect a 4% increase in revenue from the third quarter 2011 and a 15% increase from the second quarter 2012.  In addition, Copano Energy's GAAP EPS of $0.23 for the third quarter 2012 comfortably beat analyst estimates of $0.06 by 271%.  In a company press release, Copano Energy President and Chief Executive Officer R. Bruce Northcutt said, "Our third quarter results highlight our strengthening operational performance and continued progress in executing on our Eagle Ford strategy."

Given these facts, the firm is examining the board of directors' decision to sell Copano Energy now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.24 1.30%
FB $99.80 -4.10%
GOOG $683.10 -0.07%
TSLA $148.02 -9.00%
YHOO $27.05 -3.30%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs