Buckeye GP Holdings L.P. Board Under Investigation for Accepting the Buckeye Partners Bid

If you currently hold shares of Buckeye GP Holdings L.P. (NYSE:BGH), you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Buckeye GP Holdings
Affected Securities: 

Just hours after the Buckeye GP Holdings board of directors announced the proposal by Buckeye Partners, L.P. (NYSE: BPL). to take over Buckeye GP Holdings L.P. an investigation on behalf of current investors Buckeye GP Holdings L.P. (NYSE:BGH) over possible breaches of fiduciary duty by the board of directors of Buckeye GP Holdings was announced.

The investigation by a law firm focuses on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Buckeye GP Holdings arising out of their attempt to sell Buckeye GP Holdings L.P. (NYSE:BGH) to Buckeye Partners, L.P. (NYSE: BPL).

Buckeye GP Holdings L.P., located in Houston, Texas, is a master limited partnership (MLP). Buckeye GP Holdings L.P. owns 100% of Buckeye GP LLC , which is the general partner of Buckeye Partners, L.P. Buckeye GP Holdings L.P. reported in 2007 Total Revenue of $519.35million, in 2008 $1.89665billion, and in 2009 $1.77037billion.

On Friday, June 11, 2010, before the market opened Buckeye GP Holdings L.P. (NYSE: BGH) and Buckeye Partners, L.P. (NYSE: BPL) announced a agreement that would result in the merger of the two partnerships. Under the terms of the merger agreement, Buckeye GP Holdings L.P. unitholders would receive 0.705 Buckeye Partners, L.P. (BPL) limited partnership units in exchange for each Buckeye GP Holdings L.P. (BGH) limited partnership unit owned at closing. Affiliates of ArcLight Capital Partners, LLC and Kelso & Company, which control approximately 62% of Buckeye GP Holdings L.P.’s units, have committed to vote in favor of the merger, subject to limited exceptions.

Shares of Buckeye GP Holdings L.P. (BGH) traded before the announcement at $31.18 per share and soared in pre-market to $39 per share. BGH shares traded in the past 52 weeks as high as $35.14 per share, and reached $38.66 per share in 2007.

The investigation by a law firm “concerns whether the Buckeye GP Holdings L.P. Board of Directors breaches their fiduciary Buckeye GP Holdings (NYSE:BGH) stockholders by failing to adequately shop the Company prior to supporting the agreement, whether the Board of Directors breaches their fiduciary duties by not seeking a deal that would provide better Buckeye GP Holdings L.P., and whether Buckeye Partners, L.P. is underpaying Buckeye GP Holdings L.P. (BGH), thus unlawfully harming BGH stockholders.”