BATON ROUGE, La.--(BUSINESS WIRE)--Former Attorney General of Louisiana Richard P. Ieyoub and the firm of Ieyoub O’Bell & Myers, LLC (“IOM”) (www.iomcounsel.com) are investigating the proposed buyout of Regency Energy Partners LP (RGP) by Energy Transfer Partners, L.P. (ETP).
Under the terms of a definitive merger agreement announced by both companies on January 26, 2015, Regency Energy will merge into ETP, with ETP as the surviving entity. Regency Energy unitholders will receive only $0.32 in cash, together with 0.4066 of a unit of ETP, in consideration for each RGP common unit they own. Based on recent trading prices, this values Regency Energy at only $24.87 per unit.
General Ieyoub and IOM are investigating whether the proposed sale price, as well as the process that led up to it, are fair to Regency Energy’s public unitholders. Among other things, the merger price constitutes a meager 4.8% premium to Regency’s closing price of $23.73 on January 23, 2015. The price is also far below the targets set by securities analysts in recent weeks. The same company, Energy Transfer Equity, L.P. (ETE), has a controlling interest in both Regency and ETP.
Regency unitholders have the right to challenge the merger in court to ensure that they receive a fair and adequate price for their units. If you are a unitholder of RGP and you possess information relevant to the investigation, or if you would like to discuss your legal rights, contact IOM Partner Albert M. Myers at firstname.lastname@example.org or call (404) 931-7735.
Richard Ieyoub, a partner of IOM, served as a Special Prosecutor, District Attorney, and President of the National District Attorneys Association before being elected Louisiana Attorney General in 1992, serving until 2004. General Ieyoub played a leadership role in litigation on behalf of 46 states against tobacco manufacturers, who agreed in 1998 to pay over $200 billion to redress the public health costs of smoking. IOM partners Eric J. O’Bell and Albert M. Myers have practiced shareholder litigation for over 25 years. IOM has offices in the New Orleans and Atlanta metropolitan areas. The firm’s website is www.iomcounsel.com.
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