After the announcement to take over Inergy Holdings, L.P. by Inergy, L.P. an investigation on behalf of current investors of Inergy Holdings, L.P. (NYSE:NRGP) over possible shareholder claims based on breach of fiduciary duty by certain members of the Inergy Holdings board of directors in connection with the attempt to sell by Inergy Holdings, L.P. was announced.

Inergy Holdings, L.P., located in Kansas City, MO, is engaged in the investment in propane and other natural gas liquids companies. On Monday, August 09, 2010, Inergy, L.P. (NYSE:NRGY) and Inergy Holdings, L.P. (NYSE:NRGP) announced a agreement that, upon completion, will result in the merger of the two partnerships. Under the terms of the merger agreement, Inergy Holdings, L.P. (NRGP) unitholders will receive 0.77 Inergy, L.P. (NRGY) common units in exchange for each Inergy Holdings, L.P. (NRGP) common unit they own. According to Inergy Holdings, L.P. the offer represents a premium to Inergy Holdings, L.P. (NRGP) unitholders of approximately 10% based upon the 20-trading day average closing prices of both securities ending August 3, 2010.

Shares of Inergy Holdings, L.P. (NRGP) traded recently at roughly $32.20 per unit before the announcement and increased in response to the news to $32.82 per share. But the offer provides is less than 6 percent when using the August 6 closing prices of both companies and at least one analyst has set a price target of $35 per unit. Inergy Holdings, L.P. reported Total Revenue of $1.4831billion in 2007, $1.8789billion in 2008 and $1.5706billion in 2009.

The investigation by a law firm concerns whether Inergy L.P., as well as the directors of Inergy Holdings, L.P. breached their fiduciary duties by not acting in Inergy Holdings, L.P. (NRGP) shareholders' best interests in connection with the sale process of Inergy Holdings, L.P., whether the Inergy Holdings Board of Directors breached their fiduciary duty to Inergy Holdings, L.P. (NRGP) stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breach their fiduciary duties by not seeking a deal that will provide better value for Inergy Holdings, L.P. (NYSE:NRGP), and whether Inergy L.P. is underpaying for Inergy Holdings, L.P. (NRGP), thus unlawfully harming NRGP stockholders.