Robbins Umeda LLP Announces an Investigation of Union Drilling, Inc.
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Union Drilling, Inc. (NASDAQ: UDRL) in connection with their efforts to sell the company to Sidewinder Drilling Inc. Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
On September 25, 2012, Union Drilling and Sidewinder announced that they had entered into a definitive merger agreement under which Union Drilling will be acquired by Sidewinder. According to the terms of the deal, Sidewinder will acquire Union Drilling through an all cash tender offer valued at approximately $242 million. Union Drilling shareholders will receive $6.50 per share. The $6.50 per share offer price represents a premium of only 6% based on Union Drilling’s closing price on September 24, 2012. In contrast, in deals announced within the last three years in the Oil-Field Services sector, of which Union Drilling is a member, the average 1-day premium has been 47.28%, according to data from Bloomberg. Further, as recently as September 21, 2012, Union Drilling shares traded over the offer price, trading as high as $6.69. Additionally BMO Capital Markets has a price target for Union Drilling of $7.00 per share.
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Union Drilling is undertaking a fair process to obtain maximum value and adequately compensate its shareholders, or seeking to benefit themselves. On August 1, 2012, Union Drilling reported financial results for the second quarter of 2012 with adjusted earnings per share of $0.03, which improved on the previous quarter’s earnings per share of -$0.11 and the second quarter of 2011 earnings per share of -$0.16. Union Drilling’s net income for the second quarter of 2012 was $0.6 million compared to a loss of $3.4 million during the second quarter of 2011. Given these financial results, Robbins Umeda LLP is examining the board of directors’ decision to sell Union Drilling now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Robbins Umeda LLP attorneys highlight that Union Drilling shareholders have the option to file a class action lawsuit against the company to secure the best possible price for the company’s shareholders and the disclosure of material information to shareholders so they can vote on the transaction in an informed manner.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.