NEW YORK, June 9, 2016 /PRNewswire/ -- WeissLaw LLP is
investigating possible breaches of fiduciary duty and other
violations of law by the Board of Directors of Rose Rock Midstream
L.P. ("RRMS" or the "Company") in connection with the proposed
acquisition of the Company by SemGroup Corporation ("SEMG"). On
May 31, 2016, the Company announced
it had reached a definitive agreement for SEMG to acquire all
outstanding units of RRMS in a stock-for-unit transaction.
Under the terms of the agreement, RRMS unitholders will receive
0.8136 shares of SEMG for each RRMS unit they own; representing a
consideration of $25.83 per unit
based on SEMG's May 31 closing price
of $31.76.
WeissLaw is investigating whether RRMS's Board acted to maximize
shareholder value prior to entering into the
agreement. Notably, the consideration offers virtually no
premium over the May 31 closing price
of $25.80. Additionally, on that
same day, RRMS traded at $26.31, or
approximately $0.50 above the per
unit consideration. Moreover, the Company recently announced
positive financial results. It reported EBITDA of $49 million in the first quarter of 2016, as
compared with $42.1 million reported
in the same period of the previous year, representing an increase
of 16% year-over-year and an increase of 5% when compared to the
$46.6 million reported in the fourth
quarter of 2015.
Given these facts, WeissLaw is investigating the Board's
decision to sell RRMS and whether RRMS unitholders will obtain
their fair and proportionate share of the Company's continued
success and future growth prospects. If you own RRMS units and
would like more information about your rights or our investigation,
or if you have information to share with us, please contact
Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
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
stockinfo@weisslawllp.com or fill out the form on our
website,
http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP