Newman Ferrara LLP Announces Investigation of Crimson Exploration Inc.
NEW YORK--(BUSINESS WIRE)-- Newman Ferrara LLP has begun an investigation into potential claims against the board of directors of Crimson Exploration Inc. (“Crimson”) (Nasdaq: CXPO ) concerning its proposed merger agreement with Contango Oil & Gas Company (“Contango”) (NYSE MLT: MCF).
Crimson announced that it has entered into an agreement and plan of merger to be acquired by Contango in an all-stock transaction. Under the merger agreement, Crimson shareholders will receive 0.08288 shares of Contango stock for each share of Crimson stock owned. Based on Contango’s closing stock price on April 29, 2013, the proposed merger would provide implied value to Crimson shareholders of only $3.19 per share of Crimson stock owned. However, Crimson stock has traded at above that implied offer price as recently as April 15, 2013, when Crimson stock reached $3.47 per share.
Crimson’s Board of Directors has unanimously approved the merger agreement. At the same time, Crimson’s senior management has negotiated new employment contracts for themselves with Contango, should the proposed merger be completed. Specifically, it was negotiated that Allan D. Keel will be appointed President and Chief Executive Officer of the combined company and E. Joseph Grady will be appointed Senior Vice President and Chief Financial Officer of the combined company.
Newman Ferrara’s investigation concerns whether Crimson’s Board of Directors has breached its fiduciary duties to act in the best interests of Crimson shareholders. The investigation focuses on the potential unfairness of the consideration being provided to Crimson shareholders and the process by which Crimson’s Board of Directors considered and approved the proposed deal.
Concerned investors may contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or firstname.lastname@example.org to discuss this investigation, their rights, or potential remedies.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.
Newman Ferrara LLP
Roy Shimon, 212-619-5400
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