MONSEY, N.Y., Feb. 28, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP has renewed its investigation of the proposed merger of Callon Petroleum Company (NYSE: CPE) (“Callon”) with APA Corp. (“APA”) in an all-stock transaction that values Callon at approximately $38.31/share, which is below the price target of virtually all Wall Street analysts for Callon stock prior to announcement of the merger.
The investigation of the proposed merger was renewed upon the filing of a proxy by Callon on February 16, 2024.
If you remain a Callon shareholder and have concerns about the transaction, you may contact our firm at the following link to discuss your legal rights at no charge:
https://wohlfruchter.com/cases/callon-petroleum-company/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?
On January 4, 2024, Callon announced that it had agreed to merge with APA in an all-stock transaction under which each Callon common share will be exchanged for a fixed ratio of 1.0425 shares of APA common stock. The exchange values Callon at approximately $38.31 per share based on APA’s closing price on January 3, 2024.
On February 16, 2024, Callon filed a definitive proxy statement (“Proxy”) under Section 14(a) of the Securities Exchange Act of 1934, scheduling a vote on the proposed merger for March 27, 2024.
“We are investigating whether the Proxy fully discloses all material facts concerning the proposed merger.” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes the compensation and potential conflicts of all of Callon’s financial advisors, the premium of a proposal submitted by a rival bidder (Company D), and discrepancies concerning synergy estimates.”
Notably, according to TipRanks, the implied deal price of $38.31 per Callon share is below the price target of virtually all Wall Street analysts for Callon stock prior to announcement of the merger.
Further, several Callon shareholders publishing to SeekingAlpha have expressed disappointment with the deal price, with one Callon investor commenting that this is a “bad deal for CPE shareholders,” and another Callon investor responding that “CPE should have been given [an] even bigger premium.”
About Wohl & Fruchter
Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
