The Shareholders Foundation announces that an investor, who currently holds shares of QR Energy LP (NYSE:QRE) filed a lawsuit in effort to halt the proposed takeover of QR Energy LP by Breitburn Energy Partners.
Investors who purchased shares of QR Energy LP (NYSE:QRE) and currently hold any of those NYSE:QRE shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:QRE stockholders by agreeing to sell QR Energy LP too cheaply via an unfair process to Breitburn Energy Partners LP.
On July 24, 2014, Breitburn Energy Partners LP (NASDAQ:BBEP) and QR Energy, LP (NYSE: QRE) announced the signing of a merger agreement pursuant to which Breitburn will acquire QR Energy in a unit-for-unit exchange implying a transaction value of approximately $3.0 billion, including QR Energy’s existing net debt and outstanding Class C Convertible Preferred Units. Under the terms of the merger agreement, holders of QR Energy’s Common and Class B units, including those issuable upon a change in control, will receive approximately 72 million Breitburn common units, or 0.9856 of a BBEP unit for each unit of QRE held. The consideration to be received by QR Energy unitholders is valued at $22.48 per unit, based on Breitburn’s closing price of $22.81 on July 23, 2014,
However, the plaintiff claims that the offer is unfair to NYSE:QRE stockholders and undervalues QR Energy, LP. Indeed, QR Energy LP reported that its annual Total Revenue rose from $262.37 million in 2010 to $455.63 million in 2013 and that its Net Income of $19.88 million in 2010 rose to $60.97 million in 2013. Shares of QR Energy LP (NYSE:QRE) grew from $15.17 per share in July 2013 to as high as $18.96 per share on July 23, 2014.
Furthermore, the plaintiff alleges that the process is unfair to NYSE:QRE stockholders too. Indded, certain QR Energy unitholders owning approximately 37% of the votes of the outstanding QRE units have agreed to vote in favor of the transaction and that certain holders of QRE’s Class B contingent units have agreed to reduce the outstanding number of such units by approximately 42%, subject to closing adjustments.
On August 19, 2014, NYSE:QRE shares closed at $20.72 per share.
Those who are current investors in QR Energy LP (NYSE:QRE) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego