NEW YORK, March 26, 2010 (GLOBE NEWSWIRE) -- Levi & Korsinsky is investigating the Board of Directors of CNX Gas Corporation ("CNX Gas" or the "Company") (NYSE:CXG) for possible breaches of fiduciary duty and other violations of state law in connection with a proposed sale of the Company to CONSOL Energy Inc. ("CONSOL Energy") (NYSE:CNX). On March 21, 2010, CONSOL Energy announced that it had entered into an agreement to buy 9.5 million shares of CNX Gas from stockholders represented by T. Rowe Price Associates Inc. ("T. Rowe Price"). As part of the deal with T. Rowe Price, CONSOL Energy agreed to commence a tender offer for the remaining outstanding shares of CNX Gas it does not own by May 5, 2010 at a price of $38.25 per share. CONSOL Energy currently owns approximately 83.3% of the approximately 151 million shares of CNX Gas common stock outstanding. T. Rowe Price agreed to tender the shares that its investment advisory clients own into this offer.
For the quarter ending December 31, 2009, CNX Gas reported gross profit of $177.984 million and net income of $41.111 million as compared to gross profit and net income of $120.150 million and $35.470 million, respectively, for the prior quarter. Also, at least one analyst set a price target for CNX Gas stock at $43.00 per share. The investigation concerns whether the CNX Gas Board of Directors and/or the CONSOL Energy Board breached their fiduciary duties to CNX Gas stockholders by not acting in the best interests of CNX Gas stockholders in connection with the proposed transaction.
If you own common stock in CNX Gas and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/cxg1.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.