Williams Companies swallows pride and embraces Energy Transfer
Energy Transfer Equity is to take over Williams in a US$37.7bn deal that will create the third largest energy franchise in North America.
It marks an about-turn by Williams which three months earlier had spurned an offer from Energy Transfer worth US$53.1bn.
The stock plus cash terms value each Williams share at US$43.50 a share which was a premium to Friday night's closing value of US$41.60 per share for Williams.
Contrary to normal form Williams shares fell sharply on news of the bid sliding US$4.12 to US$37.48; Energy Transfer shares shed 11% at US$20.85.
A condition of the agreed bid is that Williams drops its plans to buy out the 34% minority stake in its subsidiary Williams Partners which will now receive US$428mln in break fees from Williams Companies.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment