San Diego, Oct. 21, 2011 (Shareholders Foundation) -- An investor in NYSE: CPX shares filed a lawsuit in State Court in effort to stop the proposed merger between Complete Production Services, Inc. (NYSE: CPX) and Superior Energy Services Inc.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed Complete Production Services, Inc. (NYSE: CPX) investors arising out of the attempt to sell Complete Production too cheaply via an unfair process to Superior Energy Services.

On, Monday, Oct. 10, 2011, Superior Energy Services, Inc. (NYSE: SPN) and Complete Production Services, Inc. (NYSE: CPX) announced that their Boards of Directors have approved a merger agreement combining the two companies. Under terms of the proposed transaction, Complete Production Services stockholders will receive 0.945 common shares of Superior Energy Services and cash of $7.00 in exchange for each share of Complete Production Services, Inc. (NYSE: CPX) common stock held at closing. Based on a closing price of 27.41 of NYSE SPN shares on Friday Oct 7, 2011 Complete Production Services stockholders will receive a value of $32.90 per CPX share.

However, the plaintiff says the offer represents only a meager and is fundamentally unfair to CPX stockholders. Indeed, shares of Complete Production Services, Inc. (Public, NYSE:CPX) traded as recently as July 25, 2011 as high as $41.70 per share, thus well above the current offer and at least one analyst has set the high target price for NYSE CPX shares as high as $55 per share, also well above the current offer.

Furthermore, Complete Production Services’ financial performance increased over the past two annual filing periods. Its 12months Total Revenue rose from $1.05billion in 2009 to $1.56billion in 2010 and Complete Production Services, Inc. was able to pull out of a Net Loss of $181.67million for 2009 and report for 2010 a Net Income of $84.16million. Complete Production Services reported for the second quarter 2011 a quarterly Revenue of $551.97million compared to $360.25million one year earlier and its second quarter Net Income rose from $15.67million last year to $54.51million for the second quarter in 2011.Furthermore shares over all grew over the past years at an exceptional growth rate. NYSE: CPX shares grew from as low as $2.40 during March 09 to as high as $31.46 per share in December 2010. CPX stocks continued to grow throughout 2011 until over $40 per share in July.

In addition the plaintiff claims the merger agreement contains preclusive deal protection provisions, that will ensure the merger with Superior Energy Services, such as a no solicitation, a $70 million termination fee, and a matching right provision.