Business

Nicor investor suit calls $2.4 billion AGL bid too low

Posted December 12, 2010 10:00 pm

Bloomberg News

A Nicor Inc. investor group sued the Illinois gas distribution company and its board over a proposed $2.4 billion sale to AGL Resources Inc., saying the price is too low.

Plumbers Local No. 65 Pension Fund filed the lawsuit in Illinois state court in Chicago today on behalf of itself and other shareholders seeking to block the takeover. The suit accuses the Naperville-based company's managers and directors of breaching their fiduciary duty to shareholders.

The companies said Dec. 7 that Nicor holders will receive $21.20 in cash and 0.8382 share of Atlanta-based AGL for each share they own, valuing Nicor at about $53 a share, 13 percent more than the Dec. 6 share price.

Annette Martinez, a Nicor spokeswoman, didn't immediately return a voice-mail message seeking comment. Tami Gerke, an AGL spokeswoman, didn't immediately return a voice-mail message left after regular business hours.

The case is Plumbers Local No. 65 Pension Fund v. Nicor, 10CH52627, Cook County Circuit Court (Chicago).

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