NEW YORK, Dec. 12, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Energy Transfer Partners, L.P. ("ETP" or the "Company") in connection with the proposed acquisition of the Company by Sunoco Logistics Partners, L.P. ("Sunoco"). On November 21, 2016, the Company announced that it had reached a definitive agreement for Sunoco to acquire ETP in a unit-for-unit transaction. Under the terms of the agreement, the Company's unitholders will receive 1.5 common units of Sunoco for each unit of ETP they hold; representing consideration of $35.57 based on Sunoco's December 8 closing price.
WeissLaw is investigating whether ETP's Board acted to maximize shareholder value prior to entering into the agreement. Notably, at least one analyst set a target price of $50.00 per unit, or approximately $15.00 above the consideration. In addition, the consideration is also $8.13 lower than ETP's 52-week high of $43.50. Lastly, according to Seeking Alpha, the meagre 10% premium offered to ETP unitholders will be mostly wiped out, expecting a "distribution reduction of around 28%, from ~$4.22 to ~3.06 per unit" which, given its new guidance, will take Sunoco many years to recover.