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STR Alert: Monsey Firm of Wohl & Fruchter Investigating Fairness of the Proposed Merger of Sitio Royalties Corp With Viper Energy

1. Wohl & Fruchter investigating the Sitio-Viper merger for fairness. 2. Sitio valued at $19.41 per share, below analysts' targets of up to $27. 3. Sitio shareholders will only own 20% in the combined company after merger. 4. Concerns about the merger's fairness are raised amid legal scrutiny.

M&A
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+0.61%S&P 500
$19.9806/09 09:50 AM EDTEvent Start
$19.8706/10 04:20 PM EDTLatest Updated
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FAQ

Why Bearish?

The merger price of $19.41 is significantly lower than analyst targets, indicating possible undervaluation, reminiscent of past M&As that underperformed. Investor sentiment may shift negatively due to the investigation of its fairness.

How important is it?

The investigation indicates significant potential legal risks which can affect shareholder confidence and stock valuation. Given the disparity between the proposed price and expected values from analysts, this issue holds considerable weight for STR.

Why Short Term?

Concerns raised by the investigation can lead to immediate market reactions, like selling pressure before the deal closes. Historically, investigations in merger scenarios often impact stock prices in the short run.

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VIPR
MONSEY, N.Y., June 09, 2025 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed merger of Sitio Royalties Corp. (NYSE: STR) (“Sitio”) with Viper Energy, Inc. (“Viper”) in an all-stock transaction that values Sitio at approximately $19.41 per share based on the closing price of Viper common stock on June 2, 2025. The implied deal price is below the price targets for Sitio of at least four Wall Street analysts, as per the list below (source: TipRanks). If you remain a Sitio shareholder and have concerns about the fairness of the merger, you may contact our firm at the following link to discuss your legal rights at no charge: https://wohlfruchter.com/cases/sitio-royalties-corp/ Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com. Why is there an investigation? On June 3, 2025, Sitio announced that it had agreed to merge with Viper in an all-stock transaction under which each Sitio shareholder will receive 0.4855 shares of Class A common stock of a new holding company (“pro forma Viper”) for each share of Sitio Class A common stock. The exchange values Sitio at approximately $19.41 per share. After the closing, Sitio shareholders will own only 20% of the combined company. Notably, according to TipRanks, the implied deal price of $19.41 per Sitio share is below the price targets for Sitio of at least four Wall Street analysts: Michael Scialla of Stephens ($27.00)Mark Lear of Piper Sandler ($26.00)William Janela of Mizuho Securities ($22.00)Betty Jiang of Barclays ($21.00) “We are investigating whether the Sitio Board of Directors acted in the best interests of Sitio shareholders in approving the merger,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether the exchange ratio agreed upon is fair to Sitio shareholders, and whether all material information regarding the transaction has been fully disclosed.” About Wohl & Fruchter Wohl & Fruchter LLP has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. Contact:Wohl & Fruchter LLPJoshua E. Fruchter Toll Free 866.833.6245alerts@wohlfruchter.com www.wohlfruchter.com

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