Robbins LLP: Acquisition of Westar Energy, Inc. (WR) by Great Plains Energy Incorporated (GXP) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Westar Energy, Inc. (NYSE: WR) by Great Plains Energy Inc. (NYSE: GXP). On May 31, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Great Plains will acquire Westar. Under the terms of the agreement, Westar shareholders will receive $51.00 in cash and $9.00 in Great Plains common stock for each share of Westar they own for a total consideration of $60.00 per share of Westar.
Is the Proposed Acquisition Best for Westar and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Westar is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On May 3, 2016, Westar reported strong earnings results for its first quarter 2016. Income from operations for the quarter was $141.8 million, an increase of 12.9% compared to the same period last year. Net income for the quarter was $65.6 million, an increase of 28.6% compared to the same period last year.
In light of these facts, Robbins LLP is examining Westar’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Westar shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Westar shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.