February 29, 2016 (Shareholders Foundation) - An investor who currently holds shares of Questar Corporation (NYSE:STR), filed a lawsuit in effort to halt the proposed takeover of Questar Corporation. by Dominion Resources, Inc for $25.00 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:STR stockholders by agreeing to sell Questar Corporation. too cheaply via an unfair process to Dominion Resources, Inc

On February 1, 2016, Dominion Resources, Inc. (NYSE: D) and Questar Corporation (NYSE:STR) announced an agreement for the companies to combine, in an all-cash transaction in which Dominion has agreed to pay Questar shareholders $25 per share - about $4.4 billion - and assume Questar's outstanding debt.

However, plaintiff claims that the proposed consideration NYSE:STR shareholders will receive is grossly inadequate and undervalues Questar Corporation. Indeed, at least one analyst has set the high target price for NYSE:STR shares at $26.00 per share. Furthermore, Questar Corporation reported that while its annual Total Revenue declined from over $1.22 billion in 2013 to over $1.18 billion in 2014 its respective Net Income increased from $161.20 million to $226.50 million. In addition, the plaintiff alleges that the process is also unfair to NYSE:STR stockholders. The plaintiff claims that the directors agreed to preclusive deal protection devices such as a $99 million termination fee provision, that deter other bidders from making a superior offer for Questar Corporation.