Forest Oil Corporation Shareholder Alert: Bernstein Liebhard LLP Announces Investigation of Acquisition by Sabine Oil & Gas LLC
May 07, 2014
Bernstein Liebhard LLP is investigating whether the Board of Directors of Forest Oil Corporation (“Forest Oil” or the “Company”) (NYSE: FST) breached its fiduciary duty to its shareholders in agreeing to sell Forest Oil to Sabine Oil & Gas LLC (“Sabine”).
Under the terms of the agreement, Sabine and Forest Oil will combine their businesses under a newly formed holding company, Sabine Oil & Gas Corporation (“Sabine Oil & Gas”). Forest Oil will merge with a subsidiary of Sabine Oil & Gas and survive as a subsidiary of Sabine Oil & Gas. As part of the transaction, each share of Forest Oil common stock will be converted into 0.1 of a share of Sabine Oil & Gas common stock. Concurrent with the merger, Sabine’s parent entity will contribute all of its equity interest in Sabine to Sabine Oil & Gas, in exchange for which it will receive approximately 33 million shares of Sabine Oil & Gas common stock. The investigation is focused on the potential unfairness of the price to Forest Oil shareholders and the process by which the Forest Oil Board of Directors considered and approved the transaction.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last twelve years.