Boston, MA 08/15/2014 (wallstreetpr) – The Board of Directors of Kinder Morgan Energy Partners LP (NYSE:KMP), the North America based pipeline transportation and energy storage company, are under scrutiny because of the possible violation of fiduciary duty as well as other state laws violations. The violation is somehow correlated to the sale of the partnership to the Kinder Morgan Inc (NYSE:KMI).
National firm Levi & Korsinsky will investigate:
The responsibility of the investigation on the Board of Directors has been taken by the national firm Levi & Korsinsky. The firm is looking whether the company’s BODs have violated the fiduciary duties to the stockholders by failing to successfully shop the partnership before settling to sign into the transaction. Moreover, the firm is also checking whether Kinder Morgan Inc (KMI) is underpaying the kinder Morgan shares.
Share and unit price:
Before the agreement, the unit holders of Kinder Morgan Energy Partners LP (NYSE:KMP) were allowed to 2.1931 KMI shares along with $10.77 in cash on every KMP unit. The entire valuation is equivalent to almost $90 per unit, 12% premium based on the closing price of August 8, 2014.
Dividend of $2.00 by 2015:
The acquisition will simplify the structure of Kinder Morgan group of companies, which benefits all the unit-holders, as well as the shareholders. However, Kinder Morgan Inc (NYSE:KMI) is expecting to return a dividend of $2.00 in 2015, which is 16% more than the projected dividend of $1.72 in this year. In fact, the management expects to increase the dividend every year by 10% from 2015 to 2020.
Expansion of business:
On news dated August 13, 2014, Richard D. Kinder, the CEO estimates $44 billion deal to merge the pipeline with Kinder Morgan Inc (NYSE:KMI). Couple of days back, the company stated that it would own all the KMP, Kinder Morgan Management as well as EI Paso Pipeline Partners. The transaction will help to make more profits and expand the business.
