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Investigation of Possible Breach of Fiduciary Duty in CVR Energy


Posted on Jan 01, 2016

An independent investigation has been launched in the recent sale of CVR Energy, Inc. and whether or not there has been a breach of fiduciary duty. Carl C. Icahn, through at least one of his affiliated companies, made an unsolicited offer to purchase all of the outstanding shares of CVR Energy, Inc. 

The terms of the purchase agreement put forth by Icahn is estimated to be around $2.6 billion, with stockholders receiving $30 cash per share. The shareholders will also be awarded a Contingent Value Right, which where they would receive additional payment if the final sale renders the shares of stock over $30. Some analysts value the current stock sale price at $35. 

The process of the sale to Icahn will undergo an investigation by a private firm to decide if the Board of Directors of CVR Energy, Inc. properly shopped around before the sale of the company and whether or not they were able to negotiate for the highest possible share prices for their stockholders. 

Since the stockholders purchase shares of the company, they have put their trust in the board of directors to invest in their best interests. If it is discovered that the board had not gone through the proper sale process before making the agreement, they may find themselves in a possible breach of fiduciary duty to their shareholders. 

If you have questions regarding breach of fiduciary duty in New York, contact the Law Offices of Jonathan M. Cooper. His office of experienced New York business attorneys offer free consultations, and you can order their book 3 Reasons That Your Employment Agreement May Not Be Worth The Paper It's Printed On free online.

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