SAN DIEGO, Dec. 21, 2020 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of QEP Resources, Inc. ("QEP" or the "Company") (QEP) - Get Report breached their fiduciary duties in connection with the proposed sale of the Company to Diamondback Energy, Inc. (FANG) - Get Report ("Diamondback" or the "Company").
On December 21, 2020, QEP announced that it had entered into a definitive merger agreement with Diamondback. Under the terms of the definitive merger agreement, stockholders of QEP will receive 0.05 shares of Diamondback common stock in exchange for each share of QEP common stock, representing an implied value to each QEP stockholder of $2.29 per share based on the closing price of Diamondback common stock on December 18, 2020. QEP shareholders will be subject to the future price fluctuation of Diamondback's stock price. Following the news, in pre-market trading on December 21, 2020 Diamondback stock was trading down over 4%.
The investigation concerns whether the QEP board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for QEP shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given analysts' projections for future revenue growth. The 52-week high for QEP was $4.80.
If you are a shareholder of QEP and believe the proposed buyout price is too low or you're interested in learning more about the investigation, please contact lead analyst Jim Baker ( email@example.com ) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP: Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact: Johnson Fistel, LLP Jim Baker, 619-814-4471 firstname.lastname@example.org
SOURCE Johnson Fistel, LLP