August 26, 2016 (Shareholders Foundation) - An investor who currently holds shares of Talen Energy Corp (NYSE:TLN), filed a lawsuit in effort to halt the proposed takeover of Talen Energy Corp. by Riverstone Holdings LLC for $14.00 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:TLN stockholders by agreeing to sell Talen Energy Corp. too cheaply via an unfair process to Riverstone Holdings LLC

On June 3, 2016, Talen Energy Corp (NYSE:TLN) announced that it has entered into a merger agreement with affiliates of private investment firm Riverstone Holdings LLC. Under terms of the merger agreement, all outstanding shares of Talen Energy Corp (NYSE:TLN)common stock not currently owned by Riverstone affiliated entities will be acquired for $14.00 per share in cash.

However, plaintiff claims that the proposed consideration NYSE:TLN shareholders will receive is grossly inadequate and undervalues Talen Energy Corp. Indeed, at least one analyst has set the high target price for NYSE:TLN shares at $15.00 per share.

In addition, the plaintiff alleges that the process is also unfair to Talen Energy Corp. stockholders. Indeed,
Riverstone and its affiliates have already agreed to vote their 35 percent stake in favor of the proposed transaction.