2009-11-06 19:55:05 - Investigation on behalf of investors of Encore Acquisition Company (Public, NYSE:EAC) shares over possible breach of fiduciary duty by the Encore Acquisition Company board of directors – Contact us at mail@shareholdersfoundation.com

An investigation on behalf of current investors Encore Acquisition Company (Public, NYSE:EAC), who purchased the shares before October 30, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price were announced.

If you are currently an investor in shares of Encore Acquisition Company (NYSE:EAC), and purchased the shares before October 30, 2009, and / or have additional information relating to the investigation, you should contact the Shareholders Foundation, Inc. at email: mail(at)shareholdersfoundation.com or at: +1 (858) 779 - 1554

The investigation by a law firm focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Encore Acquisition Company arising out

of their attempt to sell Encore Acquisition to Denbury Resources. On November 01, 2009 Encore Acquisition Company (NYSE: EAC) and Denbury Resources Inc. (NYSE: DNR) announced that they have entered into a definitive merger agreement pursuant to which Denbury Resources will acquire Encore Acquisition in a transaction valued at approximately $4.5 billion. Under the proposed agreement, Encore Acquisition stockholders will receive $50.00 per share for each share of Encore Acquisition common stock, comprised of $15.00 in cash and $35.00 in Denbury Resources Inc common stock subject to both an election feature and a collar mechanism on the stock portion of the consideration. The Boards of Directors of both companies have unanimously approved the merger agreement.
But according to an investigation by a law firm “the transaction appears to be unfair” to current investors of Encore Acquisition Company (NYSE: EAC) because the “offer to purchase Encore Acquisition Company (EAC) appears opportunistically timed to take advantage of the current economic downturn”. The investigation “concerns whether the Encore Acquisition Board of Directors breach their fiduciary duties to Encore Acquisition Company ( EAC) shareholders by agreeing to sell the EAC at an unfair price thereby harming Encore Acquisition Company and its shareholders”, “whether the directors of Encore Acquisition Company may have breached their fiduciary duties by not acting in EAC shareholders' best interests”, and “the Company may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, Denbury Resources Inc. may be underpaying for Encore Acquisition Company, thus unlawfully harming EAC shareholders”. Shares of Encore Acquisition Company traded on Friday before the announcement between $39.58 and $37.07 per share. EAC shares were down from its 52weekHigh of $45.63 per share and $75.98 per share in June 2008. Encore Acquisition Company located in 2007 Total Revenue of $754.95million with a Net Income of $17.16million and in 2008 Total Revenue of $1.13542billion with a Net Income of $430.81million. Encore Acquisition Company, located Fort Worth, Texas, is engaged in the acquisition and development of oil and natural gas reserves from onshore fields in the United States. The Company's properties and oil and natural gas reserves are located in four core areas: the Cedar Creek Anticline (CCA) in the Williston Basin of Montana and North Dakota; the Permian Basin of West Texas and Southeastern New Mexico; the Rockies, which includes non-CCA assets in the Williston, Big Horn and Powder River Basins in Wyoming, Montana and North Dakota and the Paradox Basin of southeastern Utah, and the Mid-Continent area, which includes the Arkoma and Anadarko Basins of Oklahoma, the North Louisiana Salt Basin, the East Texas Basin and the Mississippi Salt Basin. Those who currently are investors in shares of Encore Acquisition Company (NYSE:EAC), and purchased the shares before October 30, 2009, and / or have additional information relating to the investigation, should contact the Shareholders Foundation.