Bronco Investor Wants $315M Chesapeake Buy Busted

Law360, New York (April 20, 2011, 7:23 PM EDT) -- A Bronco Drilling Co. Inc. shareholder on Wednesday filed a class action in Delaware state court in an effort to block Chesapeake Energy Corp.'s pending $315 million takeover, saying it dramatically undervalues the company.

Shareholder Sam Berlinberg alleges that the $11 per share offer announced April 15 comes in more than $2 per share lower than analysts had pegged Bronco stock. Bronco and its board breached their fiduciary duty to its shareholders, and the deal should be stopped, he says.

“The proposed transaction is the product...
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