Southern Union Spurns Williams Takeover Offer Of $44 A Share
August 17 2011 - 11:04AM
Dow Jones News
Southern Union Co. (SUG) reaffirmed Wednesday its decision to
merge with Energy Transfer Equity LP (ETE), officially spurning the
reiterated overture from a rival bidder.
In a government filing, Southern officially declined the renewed
offer from Williams Cos. (WMB), which on Tuesday affirmed its
$44-a-share cash offer for the natural-gas pipeline company.
Williams argued that Energy Transfer's cash-and-stock payment,
valued at $5.7 billion when it was made on July 19, would bring
less value to Southern shareholders because of volatile stock
market movements.
Energy Transfer and Williams each have hoped that combining
their positions in prolific natural-gas production areas with
Southern's access to markets will make them better able to
transport natural gas through a system that has become increasingly
congested as new drilling technology leads to a gas glut.
Energy Transfer's initial mid-June offer of $4.2 billion for
Southern sparked a bidding war with Williams that eventually added
$1.5 billion to Southern's price tag.
-By Ben Lefebvre, Dow Jones Newswires; 713-547-9201;
ben.lefebvre@dowjones.com
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