SAN DIEGO and DALLAS, Jan. 26,
2015 /PRNewswire/ -- Shareholder rights attorneys at
Robbins Arroyo LLP are investigating the proposed acquisition of
Regency Energy Partners LP (NYSE: RGP) by Energy Transfer Partners
LP (NYSE: ETP). On January 26,
2015, the two companies announced the signing of a
definitive merger agreement pursuant to which Energy Transfer
Partners will acquire Regency Energy Partners. Under the
terms of the agreement, Regency Energy Partners unit holders will
receive 0.4066 of an Energy Transfer Partner unit and a cash
payment of $0.32, valuing
$26.89 for each share of Regency
Energy Partners common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/regency-energy-partners-lp
Is the Proposed Acquisition Best for Regency Energy
Partners and Its Unit Holders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Regency Energy Partners is undertaking a fair
process to obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $26.89
merger consideration represents a one-month premium of only 13.2%
based on Regency Energy Partners' closing price on December 24, 2014. This premium is
significantly below the average one month premium of nearly 37.8%
for comparable transactions within the past five years.
Further, the $26.89 merger
consideration is significantly below the target price of
$34.00 set by analysts at RBC Capital
Markets on December 2, 2014, Barclays
on November 7, 2014, and UBS on
July 14, 2014; the target price of
$33.00 set by an analyst at Robert W.
Baird & Co. on August 21, 2014;
and the target price of $27.00 set by
an analyst at Credit Suisse on January 21,
2015.
On November 5, 2014, Regency
Energy Partners released its earnings results for its third quarter
2014, reporting strong quarterly earnings. In particular, the
company reported net income for the third quarter fiscal 2014 of
$103 million, compared with
$39 million for the comparable
quarter in fiscal 2013. Regency Energy Partners also reported
that the company's adjusted EBITA increased 100% to $344 million, compared to $172 million for the third quarter in fiscal
2013. In addition, the company beat analyst expectations of
sales for four out of the last six quarters. In commenting on
third quarter results, Regency Energy Partners' President and Chief
Executive Officer Mike Bradley
remarked, "Regency's legacy assets experienced strong growth in the
third quarter driven by continued ramp up in volumes in the
gathering and processing and NGL logistics businesses, and a
further increase in revenue generating horsepower."
In light of these facts, Robbins Arroyo LLP is examining Regency
Energy Partners board of directors' decision to sell the company
now rather than allow unit holders to continue to participate in
the company's continued success and future growth prospects.
Regency Energy Partners unit holders 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. Regency Energy Partners unit holders 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
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo -
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/robbins-arroyo-llp-acquisition-of-regency-energy-partners-lp-rgp-by-energy-transfer-partners-lp-etp-may-not-be-in-shareholders-best-interests-300025988.html
SOURCE Robbins Arroyo LLP