Williams, the company who is responsible for the 2013 Parachute Creek spill and subsequently pumped tons of benzene into Garfield County’s air shed which sickened the local population, was sold to Energy Transfer. The Wall Street Journal article says the selling price was $32.6 billion. The Pittsburgh Tribune article says the sale price was $37.7 billion.
Wall Street Journal: Energy Transfer to Buy Williams Cos. After Yearlong Pursuit
Williams in June had spurned Energy Transfer’s offer to buy the company at a much higher price
Energy Transfer Equity LP agreed to acquire Williams Cos. in a $32.6 billion deal that will create a massive U.S. network of natural-gas pipelines.
In June, Williams had rejected a $48 billion offer from Energy Transfer. But since then shares of energy companies have been beaten down. Natural-gas prices have remained low, the price of oil the companies also transport has tumbled and the outlook for growth in the pipeline industry has dimmed.
Both companies’ shares have fallen sharply since Energy Transfer’s original all-stock offer became public in June, so even though Monday’s offer is similar in exchange ratio, the total price tag is about $15 billion lower.
Williams had hired advisers to run an auction that drew other bidders, according to people familiar with the matter. But in the end, Dallas-based Energy Transfer prevailed with a bid that values Williams shares at $43.50, a 4.6% premium to their closing price Friday …
Pittsburgh Tribune: Energy Transfer Equity wins bid to buy Williams Cos. shale gas plants, pipelines
Energy Transfer Equity won its bid to take over Williams Cos., agreeing to pay $37.7 billion for control of pipelines and plants that handle almost a third of rising U.S. natural gas demand.
The deal, worth about $10 billion less than Energy Transfer Equity’s initial offer in June, would bring together companies engaged in high-profile projects looking to transport gas and liquids from the Marcellus and Utica shales beneath Pennsylvania.
Dallas-based Energy Transfer Equity controls Sunoco Logistics, which is building the $3 billion Mariner East project to carry liquids to a terminal near Philadelphia, and its Energy Transfer Partners plans to build the $4.2 billion Rover natural gas pipeline to Ohio and Michigan.
Tulsa, Okla.-based Williams, which does not expect to reduce its staff of 700 employees in Pennsylvania, has proposed the 124-mile Constitution Pipeline to take gas from the Marcellus to New York and the 183-mile Atlantic Sunrise extension to its Transco line.
Williams CEO Alan Armstrong said his company would “be a significant complement to the ETE family of diverse energy infrastructure. As a combined company, we will have enhanced prospects for growth, be better able to connect our customers to more diverse markets, and have more stability in an environment of low commodity prices” …
Shortly after the sale was announced two law firms, Rigrodsky & Long and Morgan & Morgan announced shareholder alerts and investigations into the buyout terms.
Rigrodsky & Long, P.A. announces that it is investigating potential legal claims against the board of directors of Williams Partners L.P. (“Williams” or the “Company”) (NYSE: WPZ) regarding possible breaches of fiduciary duties and other violations of law related to the Company’s entry into an agreement to be acquired by Energy Transfer Equity, L.P. (“ETE”) (NYSE: ETE).
Under the terms of the agreement, Energy Transfer Corp LP (“ETC”), an affiliate of ETE, will acquire Williams at an implied current price of $43.50 per Williams share. Williams’ stockholders will have the right to elect to receive as merger consideration either ETC common shares, which would be publicly traded on the NYSE under the symbol “ETC”, and / or cash.
The investigation concerns whether Williams’ board of directors failed to adequately shop the Company and obtain the best possible value for Williams’ shareholders before entering into an agreement with ETE. According to Yahoo! Finance, at least one analyst has issued a price target for Williams stock at $65.00 per share …
NEW YORK, Sept. 29, 2015 /PRNewswire/ — Morgan & Morgan announces that it is investigating the Board of Directors of The Williams Companies (“Williams” or the “Company”) (NYSE: WMB) for potential breaches of fiduciary duties in connection with the sale of the Company to Energy Transfer Equity, L.P. (“ETE”) (NYSE: ETE) for approximately $32.6 billion …
… Under the terms of the transaction, Energy Transfer Corp LP (“ETC”), an affiliate of ETE, will acquire Williams at an implied current price of $43.50 per Williams share. Williams’ stockholders will have the right to elect to receive as merger consideration either ETC common shares, which would be publicly traded on the NYSE under the symbol “ETC”, and / or cash.
The investigation relates to whether the proposal is fair to the public shareholders and if Williams’ Board of Directors breached their fiduciary duties to shareholders. According to Yahoo! Finance, at least one analyst has issued a price target for Williams stock at $65.00 per share …