A class action lawsuit has been filed against the utility's board of directors for allegedly violating its fiduciary duties to shareholders in approving the company's proposed sale to Great Plains Energy Inc. The lawsuit was filed in Delaware Chancery Court and claims the transaction is premature and fails to adequately compensate Aquila's shareholders.
Under the deal, Black Hills Corp. will pay about $940 million in cash for Aquila's electric utility and gas utilities. Great Plains will then acquire all the outstanding shares of Aquila for about $1.7 billion in cash and stock at $4.54 per share. Great Plains also will assume about $1 billion in Aquila's debt. The lawsuit states that shareholders believe Aquila is worth much more than what Great Plains would pay - up to $5.50 per share.
