A lawsuit was filed by investor in shares of Athlon Energy Inc (NYSE:ATHL) in effort to stop the proposed takeover and NYSE:ATHL stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/13/2014 -- An investor, who currently holds shares of Athlon Energy Inc (NYSE:ATHL), filed a lawsuit in effort to halt the proposed takeover of Athlon Energy Inc. by Encana Corporation for $58.60 per share.
Investors who purchased shares of Athlon Energy Inc (NYSE:ATHL) and currently hold any of those NYSE:ATHL shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:ATHL stockholders by agreeing to sell Athlon Energy Inc too cheaply via an unfair process to Encana Corporation.
On September 29, 2014, Encana Corporation (TSX: ECA) (NYSE: ECA) and Athlon Energy Inc (NYSE:ATHL) 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 offer is too low and undervalues Athlon Energy Inc. Indeed, at least one analyst has set the high target price for NYSE:ATHL shares at $65.00 per share. In addition, Athlon Energy Inc reported that its annual Total Revenue rose from $157.11 million in 2011 to $299.37 million in 2013 and that its respective Net Income increased from $53.01 million to $59.06 million. Shares of Athlon Energy Inc (NYSE:ATHL) grew from $26.38 per share in August 2013 to as high as $50.89 per share in July 2014.
On October 9, 2014, NYSE:ATHL shares closed at $58.08 per share.
Those who are current investors in Athlon Energy Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com