SAN DIEGO and OKLAHOMA CITY, Jan. 6,
2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins
Arroyo LLP are investigating the acquisition of Equal Energy Ltd.
(NYSE: EQU) by Petroflow Energy Corporation and Petroflow Canada
Acquisition Corp. On December 9,
2013, Equal Energy announced the signing of a definitive
agreement pursuant to which Petroflow will acquire Equal Energy for
$5.43 per share in cash for each
share of Equal Energy common stock.
(Logo:
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Is the Proposed Merger Best for Petroflow and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Equal Energy is undertaking a fair process to
obtain maximum value and adequately compensate Equal Energy
shareholders in the merger. In addition, the Firm is examining
whether the proxy statement filed by Equal Energy in connection
with the transaction discloses all material information.
As an initial matter, the $5.43
consideration is substantially below the target price of
$6.68 set by an analyst at PI
Financial Corp. on November 19,
2013. Notably, Equal Energy stock traded above the
$5.43 offer price on the December 6, 2013, reaching a high of $5.72. Further, Equal Energy reported
better than expected production for the third quarter 2013 third
quarter leading Don Klapko, Equal's
President and CEO, to comment, "Our drilling continues to deliver
higher than budgeted reserves and production at an attractive cost…
[h]aving averaged over 6,700 barrels for the third quarter, we are
confident we will exceed our target production of 6,400 boe/d on
average for the full year 2013."
Finally, the directors and officers of Equal Energy agreed to
vote a total of 693,065 common shares in favor of the transaction,
which represent approximately 1.9% of the Company's outstanding
common shares.
Given these facts, Robbins Arroyo LLP is examining the Equal
Energy board of directors' decision to sell the company to
Petroflow now rather than allow shareholders to continue to
participate in the company's continued success and future growth
prospects, and whether they are seeking to benefit
themselves.
Equal Energy shareholders have the option to file a class action
lawsuit to ensure the board of directors properly evaluates the
proposal to obtain the best possible price for shareholders and the
disclosure of material information. Equal Energy shareholders
interested in information about their rights and potential remedies
can contact attorney Darnell R.
Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or
via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP