Bronco Drilling Company, Inc.
Robbins Umeda LLP Is Investigating Bronco Drilling Company, Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Bronco Drilling Company, Inc. (NASDAQ: BRNC). The 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 Bronco Drilling in connection with their efforts to be acquired by Chesapeake Energy Corporation (NYSE: CHK).
On April 15, 2011, Chesapeake and Bronco Drilling announced they have entered into a definitive agreement under which Chesapeake will make a cash tender offer to acquire outstanding shares of Bronco Drilling. The current agreement proposes a two-step transaction. First, a wholly owned subsidiary of Chesapeake will make a cash tender offer for all outstanding shares of Bronco Drilling common stock at $11 per share in cash. Second, the tender offer will be followed by a merger in which the holders of the outstanding shares of Bronco Drilling common stock not purchased in the tender offer will receive the same price per share paid in the tender offer. Upon completion of the transaction, Bronco Drilling will become an indirect wholly owned subsidiary of Chesapeake. The transaction is expected to close in the second quarter of 2011.
The investigation focuses on whether Bronco Drilling’s board is undertaking a fair process to obtain maximum value for its shareholders. Of particular note, the proposed consideration is at only an approximately 6% premium to Bronco Drilling’s closing price the day before the announcement of the deal. Further, following Bronco’s fourth quarter 2010 earnings release, which beat analyst expectations, several analysts raised Bronco Drilling’s target price to $13.50.
If you own stock in Bronco Drilling and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.