SAN DIEGO, June 19, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP (J&W) has launched an investigation into whether the board members of Rice Energy Inc. (NYSE: RICE) breached their fiduciary duties in connection with the proposed sale of the Company to EQT Corporation (NYSE: EQT). Rice Energy is an independent natural gas and oil company that engages in the acquisition, exploration, and development of natural gas, oil, and natural gas liquid (NGL) properties in the Appalachian Basin.
On June 19, 2017, Rice Energy announced they have entered into a definitive merger agreement, in which EQT will acquire Rice Energy. Terms of the deal call for Rice Energy shareholders to receive 0.37 shares of EQT common stock and $5.30 in cash for each share of common stock held. The value of the transaction, based on EQT's closing stock price as of June 16, 2017, is approximately $27.04 per Rice Energy share. Shareholders will be subject to the future price fluctuation of EQT's stock price.
The investigation concerns whether the Rice Energy board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Rice Energy shares of common stock. Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration, especially given that the price target for one Wall Street analyst is $40 per share. The 52-week high for Rice Energy is $29.36.
Rice Energy has a change of control provisions for key executives. Potential payments upon termination or change-in-control were valued at over $38million.
If you are a shareholder of Rice Energy and believe (1) the proposed buyout price is too low or (2) the merger benefits management more than the shareholders, and (3) you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP