Williams to Be Acquired by Energy Transfer in $32.6 Billion Deal
September 28 2015 - 8:12AM
Dow Jones News
By Tess Stynes
Williams Cos. agreed to be acquired by an Energy Transfer Equity
LP affiliate in a deal that values Williams at roughly $32.6
billion, expected to create one of the biggest energy companies in
the world.
Under the deal, Williams holders would receive roughly $43.50
per share held, or 1.8716 shares of ETE affiliate Energy Transfer
Corp. per Williams share held. If Williams holders chose to receive
more than an aggregate of $6.05 billion cash, the deal would be
subject to proration.
Including debt and other liabilities, the deal is valued at
about $37.7 billion.
If all of Williams' stockholders elect to receive all cash or
all stock, then each share of Williams common stock would receive
$8 a share in cash and 1.5274 ETC common shares.
Williams holders also would be eligible to a one-time special
dividend of 10 cents per share held.
The deal was approved by both companies' boards.
Williams in June had rejected ETE's unsolicited offer initially
valued at $48 billion, or $53.1 billion including debt and other
liabilities. Williams said at the time that the offer significantly
undervalued the company, setting the stage for a potential bidding
contest.
Williams Chairman Frank T. MacInnis on Monday said that after an
evaluation of the company's alternatives, the board concluded the
deal with Energy Transfer is in the best interest of the company's
stakeholders.
Shares of energy companies have been slammed of late amid a drop
in oil prices, with Williams and Energy Transfer shares both
dropping more than 25% in the past three months.
Williams also terminated its deal to acquire pipeline affiliate
Williams Partners LP, which will remain a publicly traded master
limited partnership.
Energy Transfer Equity is a master limited partnership that owns
the general partner and 100% of the incentive distribution rights
of Energy Transfer Partners LP and Sunoco LP.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 28, 2015 07:57 ET (11:57 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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