Williams (WMB) said today it has proposed to acquire Southern Union Company (SUG) for $39 per share in cash, or a total enterprise value of $8.7 billion.
Williams noted the bid is a premium of 18% over Energy Transfer EquityÕs (ETE) offer for Southern Union, announced last week. WilliamsÕ bid is also all in cash, which may be viewed as preferable to Energy TransferÕs offer to exchange partnership units in Energy Transfer.
Williams also noted its proposal is not subject to any financing contingency.
CEO Alan Armstrong said the acquisition would enhance WilliamsÕ position as a North American leader in services vital to connecting news supplies of natural gas, and will strengthen the companyÕs ability to deliver value and growth.
Southern Union confirmed it had received the offer, and said its board of directors would review the proposal.
Williams noted the transaction would not impact its plans to separate its exploration and production businesses, on track for the third quarter with a tax-free spinoff of WPX Energy.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.