Energy Transfer isn’t giving up fight for Oklahoma pipeline giant
Jul 17, 2015, 5:21am CDT Updated Jul 17, 2015, 2:09pm CDT
Energy Transfer Equity announced late Thursday that it is agreeing to enter into an auction to pursue the purchase of Tulsa-based Williams Cos.
Energy Transfer Equity LP (NYSE: ETE) said earlier this week that it intends to continue to pursue its proposed purchase of Williams Cos. Inc.
To do so, the Dallas-based midstream giant confirmed late Thursday evening in a prepared statement that it has entered into a confidentiality agreement with Williams (NYSE: WMB) to pursue the Oklahoma pipeline company’s strategic alternatives process.
“ETE is looking forward to engaging with Williams and working towards a transaction that will deliver compelling value to both companies' stakeholders,” said Energy Transfer spokeswoman Vicki Granado.
Last month, Williams rejected an unsolicited bid from Energy Transfer valued at around $53 billion. The offer represented a 32 percent premium to Williams’ closing share price on June 19. But Williams said the offer for $64 a share “significantly undervalues” the midstream, which has 33,000 miles of pipeline from the Gulf of Mexico to Canada.
In response to the bid, Williams said that it was opening itself up to alternatives that could include a sale or merger. Another option would be for the Tulsa-based energy firm to move forward with its plan to purchase the remainder of its own master limited partnership, Williams Partners LP (NYSE:WPZ), to fold it into a single company.
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