An investor in Enterprise GP Holdings L.P. (NYSE:EPE) filed a lawsuit in State Court against also Enterprise Products Partners LLP alleging breaches of fiduciary duty arising out of their attempt to take over Enterprise GP Holdings L.P. too cheaply.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duty owed to the minority shareholders of Enterprise GP Holdings L.P. (NYSE:EPE) by attempting to sell Houston, Texas based Enterprise GP Holdings L.P. via an unfair process at an unfair price to Enterprise Products Partners L.P
On Tuesday, September 07, 2010, Enterprise Products Partners L.P. (NYSE:EPD) and Enterprise GP Holdings L.P. (NYSE:EPE) announced an agreement that would result in the merger of EPE with a wholly owned subsidiary of EPD through a unit-for-unit exchange. Under the terms of the agreement, EPE unitholders would receive 1.5 EPD common units in exchange for each EPE limited partner unit they own at closing, for an implied value of $57.68 per unit based on EPD's closing price on September 3, 2010.According to Enterprise GP Holdings L.P. the offer represents a premium of approximately 16 percent based on the closing prices of each equity security on September 3, 2010.

But Enterprise GP Holdings L.P. reported in 2006 $23.61215billion in Revenue, in 2007 $26.7138billion, in 2008 $35.4696billion, and in 2009 $25.5109billion. Its Net Income went from $133.89million in 2006 to $204.10million in 2009. In addition certain affiliates of Enterprise Products Company that own approximately 76 percent of the total number of outstanding Enterprise GP Holdings L.P. (EPE) units have already executed a support agreement pursuant to which they have agreed to vote their EPE units in favor of the merger. And even though Enterprise GP Holdings L.P. units traded on the last trading day before the announcement at almost $50 per unit and increased in response to the announcement to over $56 per share or almost 12%, at least one financial analyst values Enterprise GP' common stock at $60.00 per share, which is $2.32 higher than implied value of EPD's offer.