Acquisition of UNS Energy Corporation by Fortis, Inc. May Not Be in Shareholders' Best Interests
SAN DIEGO and TUCSON, Ariz., Dec. 12, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of UNS Energy Corporation (NYSE: UNS) by Fortis, Inc. (TSX: FTS). On December 11, 2013, UNS Energy announced the signing of a definitive merger agreement pursuant to which Fortis will acquire all outstanding common stock of UNS Energy for $60.25 per share in cash.
Is the Proposed Merger Best for UNS Energy and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at UNS Energy is undertaking a fair process to obtain maximum value and adequately compensate UNS shareholders in the merger.
On November 6, 2013, UNS Energy released its earnings for the third quarter and nine months ended September 30, 2013. For both periods, UNS Energy reported substantial growth in its net income and earnings per share growth over its prior year results for the same periods. Specifically, UNS Energy reported:
- net income for the third quarter increased $17 million to $68 million, an increase of 34%;
- diluted earnings per share for the quarter also increased by 34%;
- for the nine months ended September 30, 2013, net income increased to $114.0 million from $83.4 million in the same period last year; and
- UNS Energy had exceeded analyst net income and EPS expectations in last six quarters.
In a press release announcing its results, UNS Energy's Chairman and Chief Executive Officer, Paul Bonavia, commented, "The resource decisions we are making today will create long-term value for our customers and shareholders by diversifying our generating portfolio through the purchase of a modern gas-fired generating facility at a favorable price."
Given these facts, Robbins Arroyo LLP is examining the UNS Energy board of directors' decision to sell the company to Fortis now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects, and whether they are seeking to benefit themselves.
UNS Energy shareholders have the option to file a class action lawsuit to ensure the board of directors properly evaluates the proposal to obtain the best possible price for shareholders and the disclosure of material information. UNS Energy shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law 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.
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SOURCE Robbins Arroyo LLP