San Diego, Oct. 16, 2011 (Shareholders Foundation) --The announcement that El Paso Corp. agreed to be acquired by Kinder Morgan, Inc prompted an investigation on behalf of investors of El Paso Corporation (NYSE: EP) concerning whether the offer to acquire El Paso Corporation and the buyout process are unfair to investors of El Paso (NYSE EP) and whether certain of its officers and directors or others breach their fiduciary duties owed investors in NYSE:EP shares.

The investigation by a law firm concerns whether El Paso Corporation, certain of its officers and directors, and/or others breached their fiduciary duties owed El Paso (NYSE:EP) investors in connection with the proposed acquisition.

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, at least one analyst has set a price target for El Paso of $28 per share. Furthermore El Paso Corps financial performance has been increasing lately. Despite that El Pasos 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 Pasos 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.

Therefore the investigation concerns whether the El Paso Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to El Paso (NYSE:EP) shareholders by failing to adequately shop the Company before entering into this transaction.

Furthermore the investigation concerns on whether Kinder Morgan, Inc would underpay for NYSE:EP shares, thus unlawfully harming El Paso (EP) stockholders.

Thus, a potential securities class action lawsuit would seek to maximize the amount of money and information El Paso (NYSE:EP) shareholders would receive in a buyout, so the law firm.