SAN DIEGO, Calif., June 27, 2011 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed in State Court on behalf of current investors in the Southern Union Company (NYSE:SUG) against directors of Southern Union over alleged breaches of fiduciary duties arising out of the attempt to sell the Southern Union too cheaply to Energy Transfer Equity L.P.
Those who currently are investors in shares of the Southern Union Company (NYSE:SUG) and purchased their shares before June 16, 2011, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
On Thursday, June 16, 2011, Southern Union Company (NYSE:SUG) and Energy Transfer Equity, L.P. (NYSE:ETE) announced that the two companies have entered into a merger agreement whereby Energy Transfer Equity, L.P. will acquire Southern Union Company. Under terms of the agreement stockholders of Southern Union Company (NYSE: SUG) will exchange their common shares for newly issued Series B Units of Energy Transfer Equity, LP with a value of $33.00. Southern Union said the implied value of the Series B Units represents an approximate 17% premium to the closing price of SUG common stock on June 15, 2011.
Southern Union's COO and its chairman and CEO are said to receive more than $470million if the merger with Energy Transfer Equity closes.
The plaintiffs allege that the directors agreed to a too low stock price. In fact following the merger announcement NYSE:SUG shares jumped already from $28.26 per share on Wednesday, June 15, 2011 to $33.71 on Thursday, and $33.56 on Friday in the open market, thus already well above the offer. Then on June 23, 2011 Southern Union Company confirmed the receipt of a proposal by The Williams Companies, Inc. to acquire all of the outstanding shares of Southern Union for $39.00 per share in cash, again substantially above the offer by Energy Transfer Equity. SUG stocks in the open market traded last Friday even as high as $39.94.
Additionally, the plaintiffs claim that the proposed transaction will deny Southern Union's shareholder adequate consideration in light of the company's growth, anticipated operation results, net asset value and future profitability. In fact, Southern Union's performance in recent years has been increasing.
Those who purchased shares of Southern Union Company (NYSE:SUG) before the June 16 announcement and hold those shares, should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring service and an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.