Energy Transfer LP (ET)

[eFinanceMarkets]

Energy Transfer's exit from Williams merger upheld by court
Energy Transfer Equity (ETE +1.7%) had the right to end its merger with Williams Cos. (WMB +1.2%), the Delaware Supreme Court ruled yesterday,
The ruling means that ETE does not have to fulfill its tie-up with WMB and can press forward with claims that its former takeover target owes a $1.5B breakup fee.
ETE did not violate the 2015 agreement to buy WMB by invoking a tax flaw or allowing buyer’s remorse to hinder efforts to rescue the combination, the court ruled.
WMB argues it suffered as much as $10B in damages from ETE’s decision to pull out of the deal and rejects ETE's claim that it is owed a breakup fee under the merger agreement.