Printer Friendly

PARKER & PARSLEY FILES LAWSUIT AGAINST LOUIS DREYFUS NATURAL GAS CORP. FOR TORTIOUS INTERFERENCE AND AGAINST GRAHAM ROYALTY, LTD. FOR BREACH OF CONTRACT, CIVIL CONSPIRACY, AND FRAUD IN CONNECTION WITH PRUDENTIAL-BACHE PARTNERSHIP TRANSACTION

 MIDLAND, Texas, May 18 /PRNewswire/ -- Parker & Parsley Petroleum Company ("Parker & Parsley") (NYSE: PDP) today announced that it and its wholly owned subsidiary, Parker & Parsley Acquisition Company ("Acquisition"), filed a lawsuit on Friday, May 14, against Louis Dreyfus Natural Gas Corp. ("Dreyfus") in State District Court, Cochran County, located in west Texas and amended the lawsuit on Monday, May 17, to include Graham Royalty, Ltd. ("Graham Royalty") as a defendant.
 In the lawsuit, Parker & Parsley and Acquisition are alleging that Dreyfus has maliciously interfered with the existing merger agreement with Prudential-Bache Energy Production Inc. ("P-B Energy") and Graham Royalty and their 35 affiliated Prudential-Bache Energy Income Partnerships and their related production partnerships, and that Graham Royalty has breached the merger agreement and committed civil conspiracy and fraud. Pursuant to the merger agreement, on Friday, May 14, Parker & Parsley and Acquisition commenced the previously announced cash tender offer for all of the limited partner interests and depositary units in each of the 35 public partnerships.
 The lawsuit alleges that Dreyfus, with full knowledge of the terms and conditions of the merger agreement, has not extended a bona fide written offer but has nonetheless continued to solicit and encourage P-B Energy and Graham Royalty to provide information and to negotiate with Dreyfus in violation of the merger agreement. Parker & Parsley and Acquisition allege that this conduct constitutes malicious interference with an existing contract and with prospective business relationships with P-B Energy, Graham Royalty and the partnerships. The lawsuit also alleges that Graham Royalty, in bad faith and motivated by self interest, has solicited, negotiated with, and furnished information to Dreyfus and that such conduct constitutes a breach of the merger agreement, fraud, and civil conspiracy. The lawsuit seeks actual damages, $500 million of punitive damages, and injunctive relief. At the request of Parker & Parsley, on Monday, May 17, the Court in Cochran County issued an order authorizing expedited discovery, including depositions on 2 days' notice.
 Scott D. Sheffield, president of Parker & Parsley, said: "We have made a fair and substantial offer to the limited partners of the Prudential-Bache partnerships after months of work, and we will not tolerate wrongful and intentional interference with our negotiated transaction that will, at the end of the day, result in substantial losses to Parker & Parsley and a delay to the limited partners in receiving cash for their partnership interests. Dreyfus' conduct is similar to that punished severely in the case of Pennzoil v. Texaco. All bidders had a full and fair opportunity to make their best offer, and we presented an offer that the boards of directors of P-B Energy and Graham Royalty have determined to be in the best interest of the limited partners and holders of depositary units. In addition, investment banking firms engaged by P-B Energy and Graham Royalty rendered opinions to their respective boards that the amounts offered in our cash tender offers are fair from a financial point of view to the holders of interests and units."
 Parker & Parsley Petroleum Company is an independent oil and gas company with producing properties concentrated in the Permian Basin of west Texas with additional operations in south Texas, Oklahoma, New Mexico, Colorado and Pennsylvania. The company operates over 4,400 producing oil and gas wells and is the largest operator in the Spraberry Field of the Permian Basin.
 -0- 5/18/93
 /CONTACT: Herbert C. Williamson III or Lon C. Kile of Parker & Parsley, 915-683-4768, or Fred Spar or Karen Rubin of Kekst and Company, 212-593-2655, for Parker & Parsley/
 (PDP)


CO: Parker & Parsley Petroleum Company; Louis Dreyfus Natural Gas
 Corp.; Graham Royalty, Ltd. ST: Texas IN: OIL SU:


RA-BR -- AT005 -- 9640 05/18/93 09:50 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 18, 1993
Words:612
Previous Article:S&P'S STOCK PRICE INDEX -- CLOSING, WEDNESDAY, MAY 19 /PRN/
Next Article:CYTRX CORPORATION INITIATES PRELIMINARY STUDY TO TEST THERMAX(TM) IN ALLERGIC SKIN REACTIONS
Topics:


Related Articles
EL PASO REFINERY FILES TWO LAWSUITS
PETER HALMOS ISSUES STATEMENT REGARDING EARLIER PRESS RELEASE
LOUIS DREYFUS NATURAL GAS TERMINATES SALE AGREEMENT FOR WEST DELTA PROPERTY
COMSAT FILES LAWSUIT AGAINST NEWS CORPORATION, PANAMSAT AND TELEVISA
Chalkboardtalk.com Filed Motion for Attachment Against Mark Cuban's Proceeds from Merger of Broadcast.com and Yahoo.com.
Prudential Insurance Co., Prudential Investments Corp., Prudential Securities Inc., Rascoff/Zysblat Organization Inc., Entertainment Finance...
JUDGE RECUSES HIMSELF IN THREE BILLION DOLLAR LAWSUIT.
Louis Dreyfus Natural Gas Announces Expiration of Hart-Scott-Rodino Waiting Period.
Whale Telecom Intervenes in Cyprus Court Action; Case Involves Qualcomm Telecom Partner for Russia.
Novations Group Sues Zenger Folkman Company, Jack Zenger, Joe Folkman and Others.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters