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CNX Gas Corporation investors file lawsuit against CONSOL Energy, Inc
Lawsuit on behalf of investors of CNX Gas Corporation (Public, NYSE-CXG) shares over possible breach of fiduciary duty by by CONSOL Energy, Inc – Contact the Shareholders Foundation
By: Shareholders Foundation, Inc.
If you currently hold shares of CNX Gas Corporation , you have certain options and you should contact the Shareholders Foundation, Inc by email at firstname.lastname@example.org or call +1 (858) 779 – 1554.
According to the complaint the plaintiff alleges that CONSOL Energy Inc as the controlling shareholder of CNX Gas Corp seeks to take over the remaining outstanding CXG shares through an unfair process and for an unfair price.
On March 21, 2010, CONSOL Energy Inc announced that it had entered into an agreement to purchase the remaining shares of CNX Gas Corporation that it does not currently own. CONSOL Energy currently owns approximately 83.3% of the approximately 151 million shares of CNX Gas common stock outstanding. According to the agreement, CONSOL Energy Inc will pay $38.25 per CXG share for the 9.5 million shares that are currently owned by investment advisory clients of T. Rowe Price Associates, Inc. and CONSOL Energy agreed to commence a tender offer for the remaining outstanding shares of CNX Gas Corp. by May 5, 2010 at a price of $38.25 per share. According to CONSOL Energy Inc the offer represents a 24% premium over the closing price on March 19, 2010. Shares of CNX Gas Corporation traded after the announcement at $38 per share, and at $31 per share days before the news.
CXG shares reached over $41 per share in 2008, and closed at $35.45 as recently as October 20, 2010.
The plaintiff alleges, among other things, that CNX Gas Corp is significantly dependent on CONSUL Energy’s business, the offer undervalues CNX Gas Corp’s recent performance and promise for substantial growth, and at least one Wall Street analyst had a price target of $43 per share.
Those who currently hold shares of CNX Gas Corporation , have certain options and should contact the Shareholders Foundation, Inc by email at email@example.com or call +1 (858) 779 – 1554.
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The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon