SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Forest Oil Corporation (NYSE: FST) breached their fiduciary duties in connection with the proposed sale of the Company to Sabine Oil & Gas LLC.
Forest Oil Corporation is engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids primarily in North America.
On May 6, 2014, Forest and Sabine entered into an agreement whereby Sabine will acquire Forest. Under the terms of the agreement, each share of Forest common stock will be converted into 0.1 of a share of Sabine Oil & Gas common stock. The combined entity is to be named Sabine Oil & Gas Corporation and is expected to list on the New York Stock Exchange.
Nationally recognized Johnson & Weaver, which focuses its practice on shareholder rights, is investigating whether the proposed deal price represents adequate consideration, especially given the unknowns surrounding the value of the transaction.
“Forest is a publicly traded company with a tangible value,” said Johnson & Weaver attorney Scott Holleman. “Forest’s directors are required to do everything they can to maximize shareholder value. How can a shareholder value this deal when the stock they are receiving doesn't yet trade on a stock exchange?”
If you are a shareholder of Forest Oil and believe 1) the proposed deal is too vague or 2) the deal favors the officers and directors and not the shareholders or 3) you’re interested in learning more about the investigation or your legal rights and remedies, please contact Johnson & Weaver’s lead analyst Jim Baker at firstname.lastname@example.org or 619-814-4471.
Johnson & Weaver is also investigating whether the Company’s directors thoroughly considered alternatives to the proposed acquisition, such as continuing on as an independent company or pursuing a deal with another company.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.