Investor Lawsuit Against Acquisition of Regency Energy Partners LP (RGP) Announced by Shareholders Foundation

SAN DIEGO, Feb. 5, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor, who currently holds units of Regency Energy Partners LP (RGP), filed a lawsuit in effort to stop the proposed takeover of Regency Energy Partners LP by Energy Transfer Partners, L.P. for a value of $26.89 per RGP unit.

Investors, who purchased units of Regency Energy Partners LP RGP prior to January 26, 2015, and currently hold any of those NYSE:RGP units, have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:RGP stockholders by agreeing to sell Regency Energy Partners LP too cheaply via an unfair process to Energy Transfer Partners, L.P.

On January 26, 2015, Energy Transfer Partners, L.P. and Regency Energy Partners LP announced they have entered into a definitive merger agreement. Under the terms of the merger agreement, the unitholders of Regency Energy Partners LP RGP will receive 0.4066 Energy Transfer Partners, L.P.ETP common units and a cash payment of $0.32 for each common unit of Regency Energy Partners LP RGP, implying an all-in price for Regency Energy Partners LP common units of $26.89 per unit based on Energy Partners LP's closing price on January 23, 2015.

However, the plaintiff claims that given Regency Energy Partners' recent strong performance as well as its future growth prospects, the proposed consideration unitholders will receive is grossly inadequate and undervalues Regency Energy Partners LP. Indeed, at least one analyst has set the high target price for NYSE RGP units at $34.00 and NYSE RGP units traded as recently as September 2014 as high as $33.57.

In addition, the plaintiff claims that the process is also unfair to NYSE:RGP unitholders. The plaintiff alleges that the defendants have exacerbated their breaches of fiduciary duty by agreeing to lock up the Merger with deal protection devices, such as a strict no-solicitation provision, a matching rights provision, and a $450 million termination fee provision, that preclude other bidders from making a successful competing offer for Regency Energy Partners LP.

Those who currently hold Regency Energy Partners LP RGP units have certain options and should contact the Shareholders Foundation, Inc. at mail@shareholdersfoundation.com or call +1 (858) 779 - 1554.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.