Duncan Energy Partners L.P. Investor Investigation Concerning Buyout Proposal

If you purchased shares of Duncan Energy Partners L.P. (NYSE: DEP) prior to the announcement and continue to hold those NYSE: DEP shares, 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): 
Duncan Energy Partners
Affected Securities: 

After Duncan Energy Partners L.P. announced that it received a proposed buyout of Duncan Energy Partners an investigation on behalf of investors in Duncan Energy Partners L.P. (NYSE:DEP) shares concerning the potential unfairness of the proposed takeover and possible breaches of fiduciary duties by certain Duncan Energy officers and directors was announced.

The investigation by a law firm concerns whether certain officers and directors at Duncan Energy Partners L.P. breached or will breach their fiduciary duties in connection with a potential takeover and also in the event of a buyout.

On Wednesday, Feb 23, 2011, Duncan Energy Partners L.P.(NYSE:DEP) announced that the chairman of the Audit, Conflicts and Governance Committee of the board of directors of Duncan Energy Partners' general partner received a proposal from Enterprise Products Partners L.P. (NYSE:EPD) whereby Enterprise Products Partners L.P. and certain affiliates would acquire all of the outstanding publicly-held common units of Duncan Energy Partners through a unit-for-unit exchange. Enterprise Products Partners L.P is proposing consideration of 0.9545 Enterprise Products Partners L.P common units for each issued and outstanding publicly-held Duncan Energy Partners (DEP) common unit. The consideration represents a value of $42.00 for each Duncan Energy Partners common unit based on the 10-day average closing price of Duncan Energy Partners common units and the closing price of Enterprise common units on February 18, 2011.

Indeed shares of Duncan Energy Partners L.P. (NYSE DEP) jumped in open market in response to the takeover proposal from $32.50 during Tuesday to $40.33 per shares.

However Duncan Energy Partners’ performance for its shareholders was increasing. Even though Duncan Energy Partners’ 12months Total Revenue decreased from $1,263million in 2006 to $979.30million in 2009, its Net Income rose from $51.68million in 2006 to $91.10million in 2009. For the first three quarters in 2010 Duncan Energy Partners L.P. reported a combined nine months Total Revenue of $839.50million with a combined nine months Net Income of $65.10million. Additionally Enterprise Products Partners L.P owns already 100 % of the general partner of Duncan Energy Partners and owns already approximately 58 % of the outstanding common units of Duncan Energy Partners (DEP).

Therefore the investigation monitors and concerns whether the Duncan Energy Partners Board of Directors will undertake an adequate and fair sales process in the event of a takeover to obtain the maximized consideration for all shareholders of Duncan Energy Partners L.P. (NYSE:DEP) and will breach their fiduciary duties to Duncan Energy Partners (DEP) shareholder by failing to adequately shop the Company before entering into any transaction. The investigation concerns also whether Enterprise Products Partners L.P. would underpay for NYSE:DEP units, thus unlawfully harming NYSE:DEP investors. A potential class action lawsuit would seek to maximize the amount of money and information NYSE DEP shareholders would receive in a buyout, so the law firm.