April 08, 2016 (Shareholders Foundation) - An investor who currently holds shares of Columbia Pipeline Group Inc (NYSE:CPGX), filed a lawsuit in effort to halt the proposed takeover of Columbia Pipeline Group Inc by TransCanada Corporation for $25.50 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:CPGX stockholders by agreeing to sell Columbia Pipeline Group Inc too cheaply via an unfair process to TransCanada Corporation

On March 17, 2016, Columbia Pipeline Group, Inc. (NYSE: CPGX) announced that it has entered into an agreement to be acquired by TransCanada Corporation for $25.50 per share in cash.

However, plaintiff claims that the proposed consideration NYSE:CPGX shareholders will receive is grossly inadequate and undervalues Columbia Pipeline Group, Inc. Indeed, NYSE:CPGX shares traded in in June 2015 as high as $33.00 per share. In addition, the plaintiff alleges that the process is also unfair to Columbia Pipeline Group, Inc stockholders. The plaintiff says that the proposed acquisition is the product of a hopelessly flawed process that is designed to ensure the sale of Columbia Pipeline Group, Inc to TransCanada on terms preferential to defendants and other Columbia Pipeline Group, Inc insiders and to subvert the interests of plaintiff and the other public stockholders of the Company.