This Day On The Street
Continue to site
ADVERTISEMENT
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 Equal Energy Ltd. By Petroflow Energy Corporation May Not Be In Shareholders' Best Interests

SAN DIEGO and OKLAHOMA CITY, Jan. 6, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Equal Energy Ltd. (NYSE: EQU) by Petroflow Energy Corporation and Petroflow Canada Acquisition Corp.  On December 9, 2013, Equal Energy announced the signing of a definitive agreement pursuant to which Petroflow will acquire Equal Energy for $5.43 per share in cash for each share of Equal Energy common stock.

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Is the Proposed Merger Best for Petroflow and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Equal Energy is undertaking a fair process to obtain maximum value and adequately compensate Equal Energy shareholders in the merger. In addition, the Firm is examining whether the proxy statement filed by Equal Energy in connection with the transaction discloses all material information.

As an initial matter, the $5.43 consideration is substantially below the target price of $6.68 set by an analyst at PI Financial Corp. on November 19, 2013.  Notably, Equal Energy stock traded above the $5.43 offer price on the December 6, 2013, reaching a high of $5.72.   Further, Equal Energy reported better than expected production for the third quarter 2013 third quarter leading Don Klapko, Equal's President and CEO, to comment, "Our drilling continues to deliver higher than budgeted reserves and production at an attractive cost… [h]aving averaged over 6,700 barrels for the third quarter, we are confident we will exceed our target production of 6,400 boe/d on average for the full year 2013."

Finally, the directors and officers of Equal Energy agreed to vote a total of 693,065 common shares in favor of the transaction, which represent approximately 1.9% of the Company's outstanding common shares.

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
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs