8/18/16 Williams Rebuffs Enterprise Merger Bid, Financial Times Says
August 18, 2016 http://finance.yahoo.com/news/williams-rebuffed-enterprise-takeover-bid-173204846.html
Williams Cos. recently rebuffed a takeover bid by pipeline rival Enterprise Products Partners LP, the Financial Times reported Thursday, citing people briefed on the negotiations.
Enterprise Products remains interested in a deal for Williams and may make another offer, according to the Times. Williams surged as much as 12 percent on the news to $29.09. Enterprise Products was up as much as 1.7 percent at $28.03.
Enterprise Products spokesman Rick Rainey declined by phone to comment. Williams didn’t immediately respond to requests for comment.
News of Enterprise’s interest comes less than two months after Energy Transfer walked away from its deal to buy Williams. Last year’s plunge in oil prices threw into question the economics of that merger, and Energy Transfer won a court case that allowed it to terminate its offer.
Williams’s future -- and CEO Alan Armstrong’s place in leading it -- has come under scrutiny since Dallas-based Energy Transfer terminated the takeover. Within two days of the deal dying, six Williams board members resigned after failing to oust Armstrong as chief executive officer.
Earlier this month , Armstrong said the company remains focused on building natural gas pipelines connecting supplies in remote shale formations to fast-growing markets. The company cut its dividend 69 percent and said it would instead invest about $1.7 billion in its Williams Partners LP unit to help pay for “growth projects.”