Energy Transfer, Williams Deal Gets FTC Clearance
June 09 2016 - 3:51PM
Dow Jones News
By Tess Stynes
Energy Transfer Equity LP said the U.S. Federal Trade Commission
gave provisional clearance to the pipeline giant's pending
acquisition of rival Williams Cos., clearing a hurdle toward
completing the troubled merger.
The approval comes a day after Williams warned that it would cut
its third-quarter dividend if the pending deal -- valued around $33
billion when it was announced -- isn't completed. Among other
requirements, Williams shareholders also need to approve the merger
plan. A shareholder vote is set for June 27.
The FTC clearance is conditioned on the companies meeting
certain conditions, including the sale of certain assets, for the
deal to proceed.
Energy Transfer has been aiming to restructure or escape the
planned acquisition in the wake of low commodities prices that have
spread pain through the energy sector. The two pipeline companies
have been in a legal tussle as Williams seeks to undo a convertible
share issue by Energy Transfer to help fund the deal and force
Energy Transfer to proceed with their merger agreement.
In recent afternoon trading, Energy Transfer shares fell 4.3% to
$13.47, and Williams shares rose 1.4% to $23.50.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
June 09, 2016 15:36 ET (19:36 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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