NEW YORK, April 30, 2013 (GLOBE NEWSWIRE) -- The fairness of the proposed acquisition of Crimson Exploration Inc. ("CXPO" or the "Company") by Contango Oil & Gas Company ("Contango") is the subject of an examination by WeissLaw LLP, a national class action, shareholder rights law firm. The examination is focusing on possible breaches of fiduciary duty and other violations of law by the Board of Directors of CXPO for agreeing to sell the Company to Contango. On April 30, 2013, the companies jointly announced they had reached a definitive agreement for Contango to acquire all outstanding shares of CXPO in an all-stock transaction valued at approximately $390 million. Under the terms of the agreement, Crimson Exploration shareholders will receive a fixed .08288 shares of Contango common stock for each CXPO share, representing approximately $3.19 based on Contango's closing price on April 29, 2013.
WeissLaw LLP is investigating whether Crimson Exploration's Board acted to maximize shareholder value prior to entering into the agreement with Contango. Notably, prior to the announcement of the deal, multiple analysts set price targets for CXPO stock significantly above the price offered by Contango under the merger agreement, with a high price target of $6.00 – or $2.81 above the price offered by Contango. Further, the offer price is a significant discount to CXPO's 52-week high of $5.69.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell Crimson Exploration and whether CXPO shareholders will obtain their fair proportionate share of the Company's continued success and future growth prospects. If you own CXPO shares and would like more information about your rights or our investigation, please contact Joshua Rubin or Kelly Keenan either by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
The firm is also in the process of investigations on behalf of shareholders of Conceptus, Inc., Exide Technologies, MPG Office Trust, Inc. and Buckeye Technologies Inc.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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