The Shareholders Foundation announces that an investigation for investors CH Energy Group (NYSE:CHG) shares was initiated concerning whether the offer by Fortis Inc to acquire CH Energy Group Inc. for $65 per shares and the buyout process are unfair to investors in NYSE:CHG shares.
Investor who purchased shares of CH Energy Group (NYSE:CHG) prior to February 21, 2012, and currently hold their NYSE:CHG shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the investigation by a law firm current investors in NYSE:CHG, that are unhappy with the $65offer, have certain options within the takeover. The investigation concerns, among other things, whether the CH Energy Group Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to CH Energy Group (NYSE:CHG) shareholders by failing to adequately shop the Company before entering into the transaction.
On Tuesday, February 21, 2012, CH Energy Group, Inc. (NYSE:CHG) announced that it has entered into a merger agreement with Fortis Inc., (TSX:FTS), under which Fortis will acquire CH Energy Group for an aggregate purchase price of approximately U.S. $1.5 billion, including the assumption of approximately U.S. $500 million of debt. Under the terms of the proposed transaction shareholders of CH Energy Group, Inc. will receive U.S. $65 for each share of the company they own.
CH Energy Group, Inc said the offer represents a 10.5% percent premium above CH Energy Group’s closing stock price on February 17, 2012, the last trading day before the announcement; a premium of 13.1 percent above its most recent 20-day trading average of $57.49; and approximately 10.4 times its 2011 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).
However, following the takeover news shares of CH Energy Group (NYSE:CHG) jumped from $58.77 per share on Friday to as high as $66.41 per share during Tuesday, February 21, 2012, thus exceeding the current offer.
Additionally, at least one analyst has set the high target price for NYSE:CHG shares at $69 per share.
Therefore, a potential securities class action lawsuit would seek to maximize the amount of money and information NYSE:CHG shareholders would receive in a buyout, so the law firm.
Those who are current investors in CH Energy Group (NYSE:CHG) and purchased NYSE:CHG shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail(at)shareholdersfoundation.com