Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of American Oil & Gas Inc. - AEZ
July 28 2010 - 9:59AM
Business Wire
Levi & Korsinsky is investigating the Board of Directors of
American Oil & Gas Inc. (“American Oil & Gas” or the
“Company”) (AMEX: AEZ) for possible breaches of fiduciary duty and
other violations of state law in connection with their attempt to
sell the Company to Hess Corporation ("Hess") (NYSE: HES). Under
the terms of the transaction, American Oil & Gas shareholders
will receive 0.1373 shares of Hess stock for each share of American
Oil & Gas they own. Based on the prior closing price of Hess
stock, the proposed transaction values American Oil & Gas stock
at approximately $7.32 per share and the Company at approximately
$443 million. In addition, American Oil & Gas shareholders may
receive a cash dividend based on the Company's positive working
capital as of the closing date.
The investigation concerns whether the American Oil & Gas
Board of Directors breached their fiduciary duties to American Oil
& Gas stockholders by failing to adequately shop the Company
before entering into this transaction and whether Hess is
underpaying for American Oil & Gas shares, thus unlawfully
harming American Oil & Gas stockholders. In particular,
American Oil & Gas stock traded at $7.52 per share as recently
as May 12, 2010 and the median price target for American Oil &
Gas stock set by analysts is $8.50 per share with at least one
analyst setting a price target at $10.00 per share.
If you own common stock in American Oil & Gas and wish to
obtain additional information, please contact Joseph E. Levi, Esq.
either via email at jlevi@zlk.com or by telephone at (212) 363-7500
or visit http://www.zlk.com/american-oil-gas-aez.html.
Levi & Korsinsky has expertise in prosecuting investor
securities litigation and extensive experience in actions involving
financial fraud and represents investors throughout the nation,
concentrating its practice in securities and shareholder
litigation.