Andrews & Springer LLC, a boutique securities class action law firm, is investigating Oiltanking Partners LP (NYSE: OILT) for potential securities law violations.
On Nov. 20, a shareholder of Oiltanking filed a breach of fiduciary duty law suit in the US District Court, Southern District of Texas, Houston Division, against the company relating to the recently announced sale of the company to Enterprise Products Partners LP, Civil Action No. 4:14-cv-3343.
The complaint alleges that on Nov. 12, Oiltanking and Enterprise announced the signing of a definitive merger agreement pursuant to which Enterprise will acquire Oiltanking in a merger in a deal worth $1.4 billion. As a result of the merger, Oiltanking unitholders are only anticipated to receive a fixed ratio of 1.3 common units of Enterprise in exchange for each unit of Oiltanking.
The complaint further alleges that the consideration that Oiltanking unitholders are expected to receive “fails to adequately compensate Oiltanking’s unitholders.” The complaint also provides that analysts at Yahoo! Finance have set a $61.00 per unit price target for Oiltanking.
As a result of the foregoing news, Andrews & Springer has opened an investigation to determine whether executives at Oiltanking knowingly breached the company’s partnership agreement for failing to provide unitholders adequate consideration.