Investigation on behalf of certain current investors in TEPPCO Partners, L.P. (Public, NYSE:TPP) over possible breach of fiduciary duty – Contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com
SAN DIEGO, CA ( www.ShareholdersFoundation.com ) – Enterprise Products Partners L.P., TEPPCO Partners, L.P., and Enterprise GP Holdings L.P. announced that Enterprise and TEPPCO have entered into definitive agreements worth about $3.3bn to merge Enterprise GP and TEPPCO, which will form the largest publicly-traded U.S. pipeline network. Subsequently an investigation on behalf of current investors of TEPPCO Partners, L.P. (Public, NYSE:TPP) over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.
If you are currently an investor in TEPPCO Partners, L.P. (NYSE:TPP) and purchased the shares before June 29, 2009 you have certain options and you should contact the Shareholders Foundation, Inc. at:
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 TEPPCO Partners, L.P. (NYSE:TPP) arising out of their attempt to sell Teppco to Enterprise Products Partners. Teppco had rejected an initial $2.75bn offer from Enterprise in April. On Monday, June 29, 2009 Enterprise Products Partners L.P., TEPPCO Partners, L.P., and Enterprise GP Holdings L.P. announced that Enterprise and TEPPCO have entered into definitive agreements to merge Enterprise Products Partners and TEPPCO. Under the terms of the definitive agreement, TEPPCO and TEPPCO’s general partner, Texas Eastern Products Pipeline Company, LLC, will become wholly-owned subsidiaries of Enterprise and TEPPCO unitholders, except for a certain affiliate of EPCO, Inc., will receive 1.24 Enterprise common units for each TEPPCO unit. The offer represents a 14.5% premium to the initial offer made by Enterprise and a 9.3% premium to the closing price of TEPPCO (NYSE:TTP) on Friday, June 26, 2009, valuing each Teppco unit at $31.36.
But according to the investigation “the transaction appears to be unfair” to current investors of TEPPCO Partners, L.P. (NYSE:TPP) as the offer “appears opportunistically timed to take advantage of the current economic downturn” and offers little price premium to Teppco’s shareholders. Thus the investigation primarily focuses on whether Board of Directors of TEPPCO Partners fulfilled their fiduciary duties to maximize shareholder value in connection with the proposal.
Shares of TEPPCO Partners, L.P. (NYSE:TPP) traded at about $30 per share after the announcement and close on Monday at $30.12 per share. TTP shares were down from a 52weekHigh of $34.02 per share, $$38.61 per share in February 2008 and over $45 per share in 2007. TEPPCO Partners, L.P., located in Houston, Texas, is a diversified energy logistics company and owns and operates a network of assets that facilitate the movement, marketing, gathering and storage of various commodities and energy-related products. Teppco reported Total Revenue of $9.658billion with a net income of $279.18million in 2007 and Total Revenue of $13.53289billion with a net income of $193.55million in 2008.
Those who are currently investor in TEPPCO Partners, L.P. (NYSE:TPP) and purchased the shares before June 29, 2009, have certain options and should contact the Shareholders Foundation, Inc. at:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739 mail@shareholdersfoundation.com www.ShareholdersFoundation.com
_____________________________________________________________________________________
Advertising. The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Any statements made in press releases, emails or over the phone by any member or personnel employed by Shareholders Foundation, Inc. or by third parties related to the Shareholders Foundation, Inc. is provided for research and guidance purposes only and are not legal advices, as we can not give you legal advice. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
