Sunoco, Inc. (NYSE:SUN) Investor Investigation Over Potential Breaches Of Fiduciary Duties In Connection With The Proposed Merger With Energy Transfer Partners
April 30, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in NYSE:SUN shares concerning whether the offer by Energy Transfer Partners, L.P. to merger with Sunoco, Inc. (NYSE:SUN) at valued at $50.13 per share and the takeover process are unfair to investors in Sunoco, Inc. (NYSE:SUN) was announced.
The investigation by a law firm concerns whether certain officers and directors certain officers and directors of Sunoco, Inc. breached their fiduciary duties owed to NYSE:SUN) investors in connection with the proposed acquisition.
On Monday, Apr. 30, 2012, Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco, Inc. (NYSE: SUN) announced that they have entered into a merger agreement whereby Energy Transfer Partners will acquire Sunoco in a unit and cash transaction valued at $50.13 per share, which consists of $25 in cash and 0.5245 of an NYSE: ETP common unit, or a total consideration of approximately $5.3 billion, based on ETP’s closing price on April 27, 2012.
Following the merger news shares of Sunoco, Inc. (NYSE:SUN) jumped from $40.92 per share on Friday to $49.50 per share on Monday, April 30, 2012.
However, at least one analyst has set the high target price for NYSE:SUN stocks at $51 per share. Additionally, Sunoco’s financial performance improved over the past recent years. Its annual revenue rose from $29.69billion in 2009 to $46.82billion in 2011.
Therefore the investigation for NYSE:SUN investors concerns whether the proposed transaction is unfair to Sunoco stockholders. Specifically, the investigation focuses on whether the Sunoco, Inc. (NYSE:SUN)Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.