SAN DIEGO, Oct. 8, 2014 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor, who currently holds shares of Athlon Energy Inc (ATHL), filed a lawsuit in effort to stop the proposed takeover of Athlon Energy Inc by Encana Corporation for $58.50 per ATHL share.
Investors, who purchased shares of Athlon Energy Inc (ATHL) prior to September 29, 2014, and currently hold any of those ATHL shares, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.
On September 29, 2014, Encana Corporation and Athlon Energy Inc announced that the two companies have entered into a merger agreement for Encana Corporation to acquire all of the issued and outstanding shares of common stock of Texas-based Athlon Energy Inc (NYSE:ATHL) by means of an all-cash tender offer for US$5.93 billion or US$58.50 per share, as well as Encana Corporation assuming Athlon's US$1.15 billion of senior notes, for a total transaction value of approximately US$7.1 billion.
However, the plaintiff claims that the $58.80-offer is too low and undervalues Athlon Energy Inc. The plaintiff says that the offered price is well below the target price set by at least eight analysts, including a price of $66.00 set by an analyst at Global Hunter Securities on July 22, 2014, a price of $65.00 set by an analyst at Stephens Inc. on August 15, 2014, and another analyst's estimate of $64.00 per share.
In addition, the plaintiff claims that the acquisition process is also unfair to ATHL stockholders. The plaintiff says that the proposed merger agreement contains certain preclusive deal protection devices, such as a no solicitation, a matching rights, and a hefty termination fee provision, that are designed to ensure the sale of Athlon Energy on terms preferential to Encana Corporation and preclude other bidders from making a higher offer.
Those who currently are Athlon Energy Inc shares and purchased any of those ATHL shares prior to the takeover announcement have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.