October 11, 2012 (Update) -- $110 million proposed settlement. According to the Notice: THIS NOTICE EXPLAINS IMPORTANT RIGHTS YOU MAY HAVE. IF YOU HELD YOUR SHARES OF EL PASO CORPORATION COMMON STOCK AS OF MAY 25, 2012, YOU MAY BE ELIGIBLE TO RECEIVE CASH FROM THE FUND CREATED AS A RESULT OF THE SETTLEMENT OF THE ABOVE-CAPTIONED CONSOLIDATED SHAREHOLDER CLASS ACTION LAWSUIT (THE “DELAWARE CONSOLIDATED ACTION” OR “ACTION”). IF YOU ARE A MEMBER OF THE CLASS (AS DEFINED IN PARAGRAPH 43 BELOW), YOUR LEGAL RIGHTS WILL BE AFFECTED WHETHER OR NOT YOU ACT AND WHETHER OR NOT YOU ARE ELIGIBLE TO RECEIVE A PAYMENT FROM THE SETTLEMENT FUND. PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY.1 Court-appointed class lead plaintiffs Pompano Beach Police & Firefighters’ Retirement System, Pipefitters Local Union #537 Trust Funds, Saratoga Advantage Trust Energy & Basic Materials Portfolio, and Saratoga Advantage Trust Mid Capitalization Portfolio (collectively, “Delaware Co-Lead Plaintiffs”), on behalf of themselves and the Class, have reached a proposed settlement of the Delaware Consolidated Action for a total of $110 million in cash (the “Settlement”). If approved by the Delaware Court of Chancery (the “Court”), the Settlement will resolve all claims asserted in the Delaware Consolidated Action, and all claims asserted in the Texas Action (defined in Paragraph 18 below) and the New York Action (defined in Paragraph 20 below) will be dismissed with prejudice.

San Diego, Oct. 19, 2011 (Shareholders Foundation) -- An investor in El Paso Corporation (NYSE: EP) filed a lawsuit against directors of El Paso in effort to block the proposed takeover of El Paso Corp. by Kinder Morgan, Inc.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed El Paso (NYSE:EP) investors arising out of the attempt to sell El Paso Corporation to Kinder Morgan Inc. 

On October 16, 2011, Kinder Morgan, Inc. (NYSE: KMI) and El Paso Corporation (NYSE: EP) announced an agreement whereby Kinder Morgan, Inc. will acquire all of the outstanding shares of El Paso Corp. The total purchase price, including the assumption of debt outstanding at El Paso Corporation and including the debt outstanding at El Paso Pipeline Partners, L.P. (NYSE: EPB) is approximately $38 billion. Under the terms of the proposed transaction shareholders of El Paso Corporation (NYSE: EP) will receive $14.65 in cash per EP share they own and 0.4187 KMI shares. Based on the closing price as of Oct. 14, 2011 of shares of Kinder Morgan, Inc. (NYSE: KMI) shareholders of El Paso Corporation will receive a value of approximately $26.87 per EP share they own. El Paso Corporation said the warrants will have an exercise price of $40 and a five-year term. El Paso Corporation said the offer represents a 47 percent premium to the 20-day average closing price of EP common shares and a 37 percent premium over the closing price of EP common shares on Oct. 14, 2011.

However, the plaintiff alleges the offer undervalues El Paso Corp. and benefits Kinder Morgan In fact, at least one analyst has set a price target for El Paso of $28 per share.

Furthermore, El Paso Corp’s financial performance has been increasing lately. Despite that El Paso’s annual Total Revenue was relatively consistent over the past four years ranging from $4.6billion to $5.3billion, El Paso Corporation was able to pull out of a Net Loss of $823million in '08 to a decreased Net Loss of $539million in 09 to a Net Income of $758million in 2010.

Additionally, El Paso’s second quarter Revenue rose from $1.01billion last year to $1.23billion this year and its second quarter Net Income increased from $157million to $262million.

Furthermore, shares of El Paso Corporation (NYSE:EP) grew over the past years at an exceptional growth rate. NYSE EP shares grew from as low as $6.20 per share in March 09 to almost $21 per share in May 2011.

In addition, El Paso Corporation said it has agreed not to solicit competing transactions and to pay a termination fee of $650 million to Kinder Morgan, Inc under certain circumstances.