Ademi LLP is investigating Exterran (NYSE: EXTN) for possible breaches of fiduciary duty and other violations of law in its transaction with Enerflex.
Ademi LLP alleges Exterran’s financial outlook and prospects are excellent and yet Exterran shareholders will receive only 1.021 Enerflex common shares for each outstanding share of common stock of Exterran. The merger agreement unreasonably limits competing bids for Exterran by prohibiting solicitation of further bids, and imposing a significant penalty if Exterran accepts a superior bid. Exterran insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Exterran’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 Exterran.