Brigham Exploration Company
Robbins Umeda LLP Announces an Investigation of Brigham Exploration Company
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Brigham Exploration Company (NASDAQ: BEXP) in connection with their efforts to sell the company to Statoil ASA (OSE: STL, NYSE: STO).
On October 17, 2011, Brigham Exploration announced that it had entered into a definitive merger agreement pursuant to which Statoil will acquire all outstanding shares of the company in an all-cash tender offer. According to the terms of the deal, shareholders will receive $36.50 for each share of Brigham Exploration they own. The cash tender offer is expected to commence within ten business days, and shareholders will have twenty business days following the day of commencement to tender their shares. The transaction is expected to close in the first quarter of 2012.
Robbins Umeda LLP’s investigation focuses on whether Brigham Exploration’s board is undertaking a fair process to obtain maximum value and adequately compensate shareholders in light of the company’s positive financial results. On August 8, 2011, the company reported diluted EPS of $0.33, a 154.8% increase, compared to the $0.13 of diluted EPS reported for the same quarter the previous year and above analyst estimates of $0.31. In addition, the company reported revenue for the second quarter fiscal year 2011 of $91.26 million, a 121.2% increase over the same quarter in the previous year and above analyst revenue estimates of $90.73 million. Moreover, at least twelve analysts have price targets ranging from $37.00 to $45.00 per share, all higher than the offer price.
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