Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of Parallel Petroleum Corporation
September 29 2009 - 7:03PM
Business Wire
Attorney Advertising. Notice is hereby given that a class action
has been commenced on behalf of shareholders of Parallel Petroleum
Corporation (“PLLL” or the “Company”) (Nasdaq: PLLL) arising from
the Company’s September 15, 2009 announcement that it has entered
into a definitive agreement for the Company to be acquired by an
affiliate of Apollo Global Management, LLC (“Apollo”), in a
transaction valued at approximately $483 million.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests with respect to
these matters, please contact Tzivia Brody, Esq. at Stull, Stull
& Brody by calling 1-800-337-4983 or 1-212-687-7230, or by
email to ssbny@aol.com or by writing to Stull, Stull & Brody, 6
East 45th Street, New York, NY 10017.
The action arises from the potential unfairness of the proposed
transaction and from the process by which the Company’s Board of
Directors addressed the offer. In particular, the price offered to
shareholders is significantly below the stock’s 52-week high of
$10.70. Moreover, the offer price appears to be more than 50% lower
than the $7 target price of certain analysts.
Under the terms of the agreement, an affiliate of Apollo will
commence a tender offer to purchase all of PLLL’s outstanding
common shares and associated preferred stock purchaser rights for
$3.15 per share, without interests and less any applicable
withholding taxes, representing an aggregate of approximately $132
million. Apollo will also assume approximately $351 million of
PLLL’s net indebtedness, rendering an overall transaction value of
$483 million.
On September 24, 2009, PLLL announced the commencement of the
tender offer, which is set to expire at midnight New York City time
on October 22, 2009, unless extended in accordance with the terms
of the merger agreement and the applicable rules and regulations of
the Securities and Exchange Commission. Following the completion of
the tender offer, the parties will complete a second-step merger in
which any remaining shares of the Company will be converted into
the right to receive the same price per share paid in the tender
offer. The transaction does not require the consent of PLLL’s
bondholders, but as required by its indenture, PLLL will offer to
repurchase all $150 million of the Company’s 10.25% Senior Notes
due 2014, at 101% of face value.
Stull, Stull & Brody has litigated many class actions for
violations of securities laws and breaches of fiduciary duties on
behalf of defrauded investors over the past 40 years and has
obtained court approval of substantial settlements on numerous
occasions. Stull, Stull & Brody has offices in New York and Los
Angeles.
Attorney advertising. Prior results do not guarantee a similar
outcome.
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