Energy Transfer Equity Announces Termination of Merger Agreement with The Williams Companies
June 29 2016 - 1:03AM
Business Wire
Energy Transfer Equity, L.P. (NYSE:ETE) (“ETE” or the
“Partnership”) today announced that it has terminated its
merger agreement with The Williams Companies, Inc. (“Williams”)
effective June 29, 2016.
As previously announced, on Friday, June 24, 2016, the Delaware
Court of Chancery issued an opinion finding that ETE is
contractually entitled to terminate the merger agreement with
Williams in the event ETE’s counsel Latham & Watkins LLP
(“Latham”) were unable to deliver a required tax opinion prior to
the June 28, 2016, outside date in the merger agreement. Latham
advised ETE that it was unable to deliver the opinion as of the
outside date. Consistent with its rights and obligations under the
merger agreement, ETE subsequently provided written notice
terminating the merger agreement due to failure of conditions under
the merger agreement, including Latham’s inability to deliver the
required tax opinion, as well as the other bases detailed in ETE’s
filings in the Delaware lawsuit referenced above.
Williams has appealed the decision by the Delaware Court of
Chancery to the Delaware Supreme Court.
Energy Transfer Equity, L.P. (NYSE:ETE) is a master
limited partnership that owns the general partner and 100% of the
incentive distribution rights (IDRs) of Energy Transfer
Partners, L.P. (NYSE:ETP) and Sunoco LP (NYSE:SUN). ETE also
owns approximately 2.6 million ETP common units and approximately
81.0 million ETP Class H Units, which track 90% of the underlying
economics of the general partner interest and IDRs of Sunoco
Logistics Partners L.P. (NYSE:SXL). On a consolidated basis,
ETE’s family of companies owns and operates approximately 71,000
miles of natural gas, natural gas liquids, refined products, and
crude oil pipelines. For more information, visit the Energy
Transfer Equity, L.P. website
at www.energytransfer.com.
Forward-looking Statements
This communication may contain forward-looking statements. These
forward-looking statements may include, but are not limited to,
statements regarding the termination of the merger agreement
between the Partnership and Williams and the ultimate outcome of
any litigation between the Partnership and Williams with respect
thereto. Forward-looking statements may be identified by the use of
the words “anticipates,” “expects,” “intends,” “plans,” “should,”
“could,” “would,” “may,” “will,” “believes,” “estimates,”
“potential,” “target,” “opportunity,” “designed,” “create,”
“predict,” “project,” “seek,” “ongoing,” “increases” or “continue”
and variations or similar expressions. These statements are based
upon the current expectations and beliefs of management and are
subject to numerous assumptions, risks and uncertainties that
change over time and could cause actual results to differ
materially from those described in the forward-looking statements.
These assumptions, risks and uncertainties include, but are not
limited to, assumptions, risks detailed from time to time in the
Partnership’s, ETP’s, SXL’s, and SUN’s filings with the SEC,
which factors are incorporated herein by reference. Important
factors that could cause actual results to differ materially from
the forward-looking statements we make in this communication are
set forth in the documents that the Partnership, ETP, SXL and SUN
file from time to time with the SEC include, but are not
limited to: (1) the ultimate outcome of the pending litigation
between the Partnership and Williams; (2) the reaction of ETE’s
unitholders, customers, employees and counterparties to the
termination of the merger agreement; (3) diversion of management
time on transaction-related and litigation-related issues; (4)
unpredictable economic conditions in the United States and
other markets, including fluctuations in the market price of the
Partnership’s common units; and (5) the ability to maintain the
Partnership’s, ETP’s, SXL’s and SUN’s current credit ratings. All
forward-looking statements attributable to the Partnership or any
person acting on the Partnership’s behalf are expressly qualified
in their entirety by this cautionary statement. Readers are
cautioned not to place undue reliance on any of these
forward-looking statements. These forward-looking statements speak
only as of the date hereof. The Partnership does not undertake any
obligation to update any of these forward-looking statements to
reflect events or circumstances after the date of this
communication or to reflect actual outcomes.
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version on businesswire.com: http://www.businesswire.com/news/home/20160628006739/en/
Energy Transfer Equity, L.P.Investor Relations:Brent Ratliff,
214-981-0795orLyndsay Hannah, 214-840-5477orMedia Relations:Granado
Communications GroupVicki Granado, 214-599-8785Mobile:
214-498-9272orBrunswick GroupSteve Lipin, 212-333-3810orMark
Palmer, 214-254-3790
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