Spectra Energy has been hit with five separate lawsuits from its shareholders who argue the company is selling itself too cheaply to Enbridge Inc.
Enbridge announced in September its plan to purchase Spectra Energy for $28 billion, which is expected to close by end of this year. However, shareholders have filed lawsuits requesting that the U.S. District Court in Houston block the sale that they deem too cheap to be accepted by Spectra Energy.
When the all-stock deal was first announced, both company executives praised the deal, saying it would create the largest energy infrastructure company in North America and boost values and dividends for shareholders.
Spectra stockholders allege that Spectra should have sought other merger opportunities that would have potentially gone for more money.