Energy Transfer again outbids Williams for Southern Union
20 Jul 2011
US natural-gas pipeline operator Energy Transfer Equity LP has once again outbid Williams Cos for the control of smaller rival Southern Union Co by raising its offer to $5.7 billion in cash.
In its latest bid unveiled yesterday, Energy Transfer has offered Southern Union shareholders $44.25 a share or $5.7 billion, redeemable in cash or stock, a 57-per cent premium over Southern Union's closing price on 15 June, the day before the companies first announced the takeover.
The total deal size will be $9.4 billion including assumption of Southern Union's debt of $3.7 billion.
The revised offer sent the shares of Southern Union soaring by about 2.2 per cent to $44.29 a share on Tuesday, giving the company a market value of $5.52 billion.
Energy Transfer's sweetened offer comes less than a week after Williams Cos once again tried to scuttle the agreed deal last month between Energy Transfer and Southern Union, by raising its unsolicited bid by nearly 13 per cent to $5.5 billion. (See: Williams raises bid for US pipeline operator Southern Union to $5.5 billion)
Energy Transfer is battling Williams Cos for the control of Southern Union's 15,000 miles of natural gas and natural gas liquids (NGL) pipelines, which can connect new fields in Texas and Oklahoma to markets in the US Midwest and Florida.
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