Southern Union Shareholders Approve Energy Transfer Equity Deal
December 09 2011 - 2:41PM
Dow Jones News
Southern Union Co. (SUG) shareholders on Friday approved the
company's buyout by rival pipeline company Energy Transfer Equity
L.P. (ETE), officially ending a long-running takeover saga.
Shareholders representing about 80% of Southern Union's
outstanding shares voted Friday; 98% of the shares were voted in
favor of the $5.7 billion acquisition.
The companies said the purchase is set to close in the first
quarter of 2012, pending regulatory approval. After the merger is
completed, Energy Transfer Equity will become one of the largest
transporters of natural gas in the U.S.
Energy Transfer's initial bid for Southern Union in July was
followed by a competing offer by Williams Cos. (WMB), resulting in
a bidding war that eventually fizzled out in Energy Transfer's
favor. Energy Transfer Chief Executive Kelcy Warren said in an
interview that even though the transaction turned "into more of an
auction than we hoped," his company is "very pleased" at the result
of the negotiations. "We feel that Southern Union shareholders have
received top dollar for their company," he said.
Southern Union CEO George Lindemann said "the transaction
creates compelling opportunities for both Southern Union and Energy
Transfer. It is the right next step for Southern Union and delivers
significant value for our shareholders."
The purchase of Southern Union comes during a major
restructuring of the natural-gas-and-oil-transportation business in
the U.S., prompted by an onslaught of new production from shale oil
and gas fields, and the growth of new urban markets for natural gas
in southern states. The shift recently spurred another mega-deal in
the pipeline business--Kinder Morgan Inc. (KMI)'s $21.1 billion
acquisition of El Paso Corp. (EP), set to close in the second
quarter of 2012.
-By Angel Gonzalez, Dow Jones Newswires;
713-547-9214;angel.gonzalez@dowjones.com
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