Nov. 2, 2009 (Business Wire) -- Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Encore Acquisition Company (“Encore” or the “Company”) (NYSE:EAC) relating to the proposed acquisition of Encore by Denbury Resources Inc. (“Denbury”). Denbury has agreed to acquire Encore in a combination stock and cash deal valued at approximately $4.5 billion.

Under the proposed agreement, Encore shareholders will receive $15.00 in cash and $35.00 in Denbury common stock for every share of Encore common stock they own. Additionally, Denbury has agreed to assume approximately $1.24 billion of Encore’s debt. The investigation concerns possible breaches of fiduciary duty and other violations of state law related to the Encore board’s approval of the proposed transaction. The transaction appears to be unfair, in part, given that the stock portion of the consideration to be paid to Encore shareholders is subject to an election feature and a price collar mechanism.

If you own shares of Encore and wish to discuss the legal ramifications of the proposed acquisition by Denbury, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Jason L. Brodsky, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.