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Marathon Oil (NYSE:MRO) shareholder Martin Siegel filed a lawsuit Monday to block a proposed acquisition by ConocoPhillips (COP), claiming the deal significantly undervalues the target company, Bloomberg reports.
Siegel said in the lawsuit that the deal could deprive Marathon (MRO) investors of more than $6B in value, and further alleges the company, its directors and financial advisor Morgan Stanley misrepresented the deal in a proxy statement recommending shareholders support it.
Siegel also claimed Marathon's (MRO) management and advisors are conflicted due to their financial interest in closing the deal, saying Marathon CEO stands to cash in stock grants valued at more than $70M and Morgan Stanley will earn $42M in fees if the deal closes.
The all-stock deal valued at ~$22.5B including debt, announced in May, would give ConocoPhillips (COP) control of assets in Texas, North Dakota and the Permian Basin.