Ademi LLP is investigating Equitrans (NYSE: ETRN) for possible breaches of fiduciary duty and other violations of law in its transaction with EQT.
In the transaction, Equitrans shareholders will receive only 0.3504 shares of EQT common stock, representing an implied value of $12.50 per Equitrans share based on the volume weighted average price of EQT common stock for the 30 days ending on March 8, 2024. As a result of the transaction, EQT's existing shareholders are expected to own approximately 74% of the combined company and Equitrans' shareholders are expected to own approximately 26%. The transaction agreement unreasonably limits competing transactions for Equitrans by imposing a significant penalty if Equitrans accepts a competing bid. Equitrans insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Equitrans’ board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.