Energy Transfer Equity Calls Off Williams Merger
June 29 2016 - 3:20AM
Dow Jones News
Energy Transfer Equity LP said Wednesday that it had terminated
its merger agreement with Williams Cos. that had been valued at
nearly $33 billion when it was signed last year.
ETE said it had provided written notice terminating the
agreement after a Delaware judge Friday ruled that the company
would be allowed to do so after its lawyers said they wouldn't be
able to deliver a tax opinion needed for the deal to close.
Williams on Monday had said that it would continue its legal
fight to close a merger with ETE after Williams' shareholders voted
to approve the troubled deal. Williams said votes cast in favor of
the merger represented more than 63% of all outstanding shares.
Williams said it had filed papers commencing an appeal of the
judge's decision to the Delaware Supreme Court. The company said it
still believed ETE breached its merger agreement and didn't have
the right to terminate it.
"Williams remains ready, willing and able to close the merger
under the Merger Agreement entered into with ETE on September 28,
2015," the company said in a statement.
In September, ETE had agreed to buy Williams in a deal that
valued Williams at $43.50 a share. Since the deal was announced,
and as oil prices continued to slide, Energy Transfer has had
second thoughts, particularly about the $6 billion cash component
of the deal.
Earlier this year, ETE said its lawyers had discovered that the
deal could potentially trigger a big tax bill, and they couldn't
sign off on it. Williams took ETE to court to try to hold the
company to the terms of the merger agreement.
Shares of Williams Cos. closed Tuesday up 3.2% at $20.64, while
ETE shares finished up 6% at $14.41.
Alison Sider and Austen Hufford contributed to this article.
Write to copydesk@wsj.com
(END) Dow Jones Newswires
June 29, 2016 03:05 ET (07:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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