Robbins Umeda LLP Is Investigating Proposed Buyout Offer of Duncan Energy Partners L.P. for Unitholders
Robbins Umeda LLP, a shareholder rights litigation firm, is investigating possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Duncan Energy Partners L.P. (NYSE: DEP) in connection with their efforts to sell Duncan Energy to Enterprise Products Partners L.P. (NYSE: EPD) in a unit-for-unit exchange. Under the terms of the proposed offer, Duncan Energy unitholders will receive 0.9545 of an Enterprise unit for each Duncan Energy common unit held. The implied value of the consideration is approximately $42.00 per unit. Enterprise Products already owns DEP Holdings, the general partner of Duncan Energy, and controls 58% of Duncan Energy’s outstanding units.
The investigation seeks to determine whether Duncan Energy’s board of directors undertook a fair process to obtain maximum value for its unitholders, especially given Duncan Energy’s recent financial results. On February 17, 2011, Duncan Energy reported its financial results for the fourth quarter of 2010. Duncan Energy’s revenues and earnings topped analyst expectations. The Company reported revenues of $275.60 million compared to consensus of $266.33 million and earnings per unit of $0.43 compared to consensus of $0.42.