SAN DIEGO & HOUSTON, July 24,
2014 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the proposed acquisition of QR
Energy, LP (NYSE: QRE) by Breitburn Energy Partners LP (NASDAQ:
BBEP). On July 24, 2014, the
two companies announced the signing of a definitive merger
agreement pursuant to which Breitburn will acquire QR Energy.
Under the terms of the agreement, QR Energy common and class B unit
holders will 0.9856 units of Breitburn common units, for a total
consideration of $22.48 per unit.
Is the Proposed Acquisition Best for QR Energy and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at QR Energy is undertaking a fair process to obtain
maximum value and adequately compensate QR Energy shareholders.
As an initial matter, the $22.48
merger consideration represents a premium of 19.1% based on QR
Energy's closing price on July 23,
2014. This premium is significantly below the average one-day
premium of 46.12% for comparable transactions in the past three
years. Further, the $22.48
merger consideration is below the target price set by a target
price of $23.00 set by an analyst at
Landenburg Thalmann & Co. on September
18, 2013.
On July 24, 2014, simultaneous to
the merger announcement, QR Energy released its preliminary
operational and financial results for the company's second quarter
2014, reporting solid increases over the prior quarter.
Specifically, the company reported total revenue of $133.3 million, an increase of 9% compared to the
previous quarter. QR Energy's average production reached
20,264 Boe per day, an increase of 8% compared to the previous
quarter, and the company's adjusted EBITDA increased 7% to
$69.6 million. QR Energy also
reported that its distributable cash flows increased 13% over the
previous quarter, reaching $34.9
million.
In light of these facts, Robbins Arroyo LLP is examining QR
Energy's board of directors' decision to merge the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
QR Energy shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material
information. QR Energy shareholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP