|Branham Law, LLP Investigating Compton Petroleum Corporation|
Dallas, Texas, July 23, 2012-Branham Law, LLP announces that it is investigating Compton Petroleum Corporation (“Compton” or the “Company”)(TSX:CMT) as well as certain of its officers and directors for possible breaches of fiduciary duties in connection with a takeover bid from MFC Industrial Ltd. announced on July 9, 2012.
Only four short days after the announcement of MFC’s takeover bid, the Board of Directors of Compton Petroleum announced a take-over bid deadline and mailed a circular from the board of directors endorsing the takeover bid by MFC. The offer price of $1.25 per share is a mere 4.2 percent premium over the closing price on Friday, July 6, 2012.
The investigation focuses on whether the officers and directors of Compton adequately discharged their obligation to maximize the value of the Company and fully investigated all of the options available.
“We are very concerned with the very short fuse between offer and endorsement,” said Trey Branham, the Managing Partner of Branham Law, LLP. “These types of deals need a thorough vetting and it is difficult to see how this was done in such a short period of time,” Branham concluded.