Investor of PP producer PetroLogistics sues company, claiming US$2.1B buyout offer from Koch Industries is too low, Bloomberg reports

NEW YORK , June 4, 2014 () – (Updates with excerpt from lawsuit in second paragraph.)
PetroLogistics LP, owner of the only U.S. factory dedicated to making polypropylene, was sued by an investor claiming a $2.1 billion buyout offer from Koch Industries Inc. is too low.

Directors of PetroLogistics shouldn’t have agreed to the deal because it “is unfair and inadequate,” Tom Klemesrud, a shareholder, said in a complaint filed yesterday in Delaware Chancery Court in Wilmington.

The buyout is designed to discourage rival offers, partly by barring Houston-based PetroLogistics from soliciting alternative proposals, Klemesrud said. He asked the court to block completion of the sale.

Melissa Cohlmia, a spokeswoman for Wichita, Kansas-based Koch, didn’t immediately respond to a request for comment on the lawsuit. PetroLogistics officials weren’t immediately available for comment. A receptionist at the company said she would refer the request to an outside public relations firm.

The case is Klemesrud v. PetroLogistics, CA9723, Delaware Chancery Court (Wilmington).


--With assistance from Dawn McCarty in Wilmington.


To contact the reporters on this story: Steven Church in Wilmington, Delaware at schurch3@bloomberg.net; Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net To contact the editors responsible for this story: Andrew Dunn at adunn8@bloomberg.net Stephen Farr

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