Williams Cos. Inc. (WMB)

[eastunder]

Tim - help me out here and bear with me

1) WMB wants to merger back with WPZ

2) ETE comes in with an offer of 64.00 a share, but requires WMB to drop the thought of merging back with WPZ

3) WMB refuses the 64.00 a share offer.

4) WMB seeks other offers and enters into an auction

5) WMB is now in the second round of that. Potential bidders, according to reuters and other sources, may be Kinder (although they say too large and could face regulatory issues, TransCanada,
Enterprise products, Phillips 66, and Marathon.

http://www.thestreet.com/story/13247652/1/williams-wmb-stock-down-as-auction-moves-to-second-round.html?puc=yahoo&cm_ven=YAHOO

So - we can assume (which we probably shouldn't assume) that WMB is after a higher price than 64 a share or perhaps WMB would like to see the offer, whatever it may be, include WPZ as well? That's a possibility.

Friday WMB closed at 48.80



Original offer was 64.00 (bump up in chart shows offer day)

Difference is 15.20

Am I nuts or is that a trade in the making under the current circumstance and the retraction in PPS?

Monday I want to buy WMB (I already own WPZ) for trade purposes only. Buy the rumor - sell the news.

What risk am I not factoring in?

Can they change their minds on the Auction process if they don't get what they are after? That's a risk.

If so - Original plan was WMB and WPZ merging so if that is the case - nothing lost nothing gained. It would be what I was expecting and as shareholder with the partners and not the main - is neither here nor there for me.

What if the final offer price comes in lower than 64? Shareholder lawsuits, blah, blah but any offer higher than current PPS will move the stock up to that area or slightly below it. As a trade that's an easy buy the rumor sell the news result and the bump is a "It is what it is" Scenario

So - back to the question...

What risk am I not factoring in? Why shouldn't I buy a few shares of WMB next week?

Inquiring minds want to know. What are your thoughts?