Enterprise Products Withdraws Its Interest in Williams -- 3rd Update
September 08 2016 - 6:42PM
Dow Jones News
By Josh Beckerman and Alison Sider
Enterprise Products Partners LP is no longer pursuing a deal to
merge with pipeline rival Williams Cos., Enterprise said
Thursday.
The company confirmed it had approached Williams regarding a
possible combination, but said it is withdrawing the offer.
"As a result of rumors with respect to our proposals, as well as
the lack of engagement by Williams, we have determined that there
is no actionable path forward toward an agreement," Enterprise
said.
A person familiar with matter disputed the idea that Williams
refused to engage. The board of Williams was actively reviewing a
revised proposal that Enterprise made less than two weeks ago,
shortly before Williams appointed three new board members,
according to a person.
In after-hours trading, Williams shares fell 5% to $29.58.
Last month Reuters reported that Enterprise approached Williams
about a potential acquisition at some point after a deal between
Williams and Energy Transfer Equity L.P. fell through in June. That
terminated deal initially was valued at $33 billion.
Williams's board went through a dramatic shake-up after its
agreement with Energy Transfer collapsed; six board members
resigned after failing to unseat Alan Armstrong, chief executive of
Williams.
In August Williams said it would appoint three new independent
directors to add to the seven directors that remained on its board.
At the same time, activist investor Keith Meister of Corvex
Management LP announced he wanted to replace the entire board.
Since then Williams has taken steps intended to strengthen its
financial position, including cutting the dividend and considering
the sale of a petrochemical plant owned by its affiliate, Williams
Partners LP.
Write to Josh Beckerman at josh.beckerman@wsj.com and Alison
Sider at alison.sider@wsj.com
(END) Dow Jones Newswires
September 08, 2016 18:27 ET (22:27 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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