San Diego, CA -- (ReleaseWire) -- 10/15/2012 -- An investor in shares of Union Drilling, Inc. (NASDAQ:UDRL) filed a lawsuit in effort to block the takeover of Union Drilling, Inc. for $6.50 per NASDAQ:UDRL share.
Investors who purchased shares of the Union Drilling, Inc. (NASDAQ:UDRL) prior to September 25, 2012, and currently hold any of those NASDAQ:UDRL shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:UDRL investors arising out of the attempt to sell the company too cheaply via an unfair process. .
On September 25, 2012, Union Drilling, Inc. (NASDAQ:UDRL) and Sidewinder Drilling Inc. announced that the two companies have entered into an agreement and plan of merger pursuant to which Sidewinder Drilling Inc will acquire all of the outstanding shares of Union Drilling common stock in an all-cash tender offer valued at approximately $242 million. Under the terms of the agreement and plan of merger, Sidewinder Drilling's acquisition subsidiary, Fastball Acquisition, Inc. will commence a cash tender offer to purchase all of the outstanding shares of Union Drilling for $6.50 per share.
However, the plaintiff alleges that $6.50offer is unfair to NASDAQ:UDRL stockholders and undervalues the company. Indeed, NASDAQ:UDRL shares traded earlier this year as high as $7.52 per share and in late 2011 as high as $8.14 per share and in April 2012 as high as $13.51 per share, thus well above the current offer. In addition, Union Drilling’s financial performance improved lately. For instance, Union Drilling, Inc. (NASDAQ:UDRL) reported that its annual Revenue rose from $168.92 million in 2009 to $250.89 million in 2011 and its Net Loss decreased from $12.03 million in ’09 to $5.35 million in 2011. Furthermore, shares of Union Drilling, Inc. (NASDAQ:UDRL) grew from as low as$2.87 per share to as high as $13.51 per share in April 2011.
Those who are current investors in Union Drilling, Inc. (NASDAQ:UDRL) and purchased their Union Drilling, Inc. shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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