Transforming Network Infrastructure Industry News

TMCNet:  Shareholder Rights Law Firm Johnson & Weaver, LLP Announces Investigation of Copano Energy's Proposed Acquisition by Kinder Morgan Energy Partners, L.P.

[January 30, 2013]

Shareholder Rights Law Firm Johnson & Weaver, LLP Announces Investigation of Copano Energy's Proposed Acquisition by Kinder Morgan Energy Partners, L.P.

SAN DIEGO --(Business Wire)--

Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Copano Energy, L.L.C. (NasdaqGS: CPNO) breached their fiduciary duties in connection with the proposed acquisition by Kinder Morgan Energy Partners, L.P.

On January 30, 2013, Kinder Morgan announced that it had entered into a definitive merger agreement to acquire all outstanding shares of CPNO in a stock-for-stock transaction, with CPNO shareholders receiving 0.4563 of a Kinder Morgan share for each share of CPNO they own. This offer price represents a value of approximately $40.91 per share, which is below at least one analyst's target price for CPNO.

The investigation will determine whether CPNO's board of directors breached their fiduciary duties to stockholders by failing to satisfactorily shop the comany before entering into this agreement. Jim Baker, lead analyst for Johnson & Weaver, stated that, "Kinder Morgan's offer appears to be inadequate and not in the best interest of CPNO's shareholders." In particular, Baker noted that CPNO's projected earnings estimates highlight CPNO's strong growth prospects, which may not be adequately reflected in Kinder Morgan's offer price.

Baker also noted the possible presence of self-dealing by CPNO's board of directors. Many of CPNO's senior executives, including members of the board, are due to receive millions of dollars in change of control payouts upon consummation of the transaction. By contrast, the transaction likely means that CPNO's planned February 14, 2013 shareholder dividend payment will be cancelled.

If you are a CPNO shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact attorney Shawn Fields (shawnf@johnsonandweaver.com) at 619-230-0063.

Johnson & Weaver, LLP is a nationally recognized shareholders' rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.


[ Back To Transforming Network Infrastructure's Homepage ]




Featured Blog Entries

Reflections from an Interop Veteran and Alum

When I returned to the Fiber Mountain™ offices in Connecticut after exhibiting at Interop Las Vegas 2015, I couldn’t help but think about how much the event has evolved through the years. I have been attending this seminal IT and networking conference since its inception in 1986 when it was called the TCP/IP Vendor Workshop, focused on interoperability of various TCP/IP program stacks.

What Fiber Mountain's Interop Recognition Means for Our Industry

When Fiber Mountain™ began its journey with a launch at Interop New York last fall, we certainly believed that we had a solution that would make a significant impact in the data center space.

What On-Board Optics Means for Density and Flexibility

This past week I read an article in Lightwave Magazine and another in Network World about the formation of the Consortium for On-board Optics (COBO), a group that seeks to create specifications and increase the faceplate density of data center switches and adapters.

Scaling Hyperscale in an Age of Exponential Growth and Virtualization

Over the past several years server, network, storage and application virtualization has revolutionized the way hyperscale data centers are built by consolidating workloads. The trend has simplified network architecture significantly and resulted in huge cost savings as well.

Video Showcase