Levi n Korsinsky is investigating the Board of Directors of American Oil & Gas Inc. for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Hess Corporation.
New York, NY, USA, July 29, 2010 (PRESSbooth.ORG) -- Levi & Korsinsky is investigating the Board of Directors of American Oil & Gas Inc. (“American Oil & Gas” or the “Company”) (AMEX: AEZ) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Hess Corporation ("Hess") (NYSE: HES). Under the terms of the transaction, American Oil & Gas shareholders will receive 0.1373 shares of Hess stock for each share of American Oil & Gas they own. Based on the prior closing price of Hess stock, the proposed transaction values American Oil & Gas stock at approximately $7.32 per share and the Company at approximately $443 million. In addition, American Oil & Gas shareholders may receive a cash dividend based on the Company's positive working capital as of the closing date.
The investigation concerns whether the American Oil & Gas Board of Directors breached their fiduciary duties to American Oil & Gas stockholders by failing to adequately shop the Company before entering into this transaction and whether Hess is underpaying for American Oil & Gas shares, thus unlawfully harming American Oil & Gas stockholders. In particular, American Oil & Gas stock traded at $7.52 per share as recently as May 12, 2010 and the median price target for American Oil & Gas stock set by analysts is $8.50 per share with at least one analyst setting a price target at $10.00 per share.
If you own common stock in American Oil & Gas and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi @ zlk.com or by telephone at (212) 363-7500 or visit http://www.zlk.com/american-oil-gas-aez.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
Contact: Levi & Korsinsky, LLP, Joseph Levi, Esq. Eduard Korsinsky, Esq. 30 Broad Street - 15th Floor, New York, NY 10004, Tel: (212) 363-7500, Fax: (212) 363-7171, www.zlk.com
Contact:
Jared Morine
Levi & Korsinsky, LLP
30 Broad Street, 15th Floor
New York, NY 10004
212-363-7500
jmorine @ zlk.com
http://www.zlk.com
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