Ademi LLP is investigating Blueknight (Nasdaq: BKEP and BKEPP) for possible breaches of fiduciary duty and other violations of law in its transaction with Ergon.
Ademi LLP alleges Blueknight’s financial outlook and prospects are excellent and yet Blueknight shareholders will receive only Ademi LLP alleges Blueknight’s financial outlook and prospects are excellent and yet Blueknight holders will receive only $4.65 per common unit owned and $8.75 per preferred unit owned. The transaction agreement unreasonably limits competing bids for Blueknight by prohibiting solicitation of further bids, and imposing a significant penalty if Blueknight accepts a superior bid. Blueknight insiders will receive substantial benefits as part of change of control arrangements. The transaction agreement unreasonably limits competing bids for Blueknight by prohibiting solicitation of further bids, and imposing a significant penalty if Blueknight accepts a superior bid. Blueknight insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Blueknight’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Blueknight.