Williams rejects ETE’s $48B buyout bid
Will now consider possible sale of the company.
DALLAS — The Williams Cos. rejected a $48 billion buyout offer from Energy Transfer Equity, but said that it may still put the natural-gas pipeline company up for sale.
Williams said ETE’s bid significantly undervalues the business, but that it was exploring other strategic options.
Energy Transfer Equity LP, of Dallas, says it’s made multiple attempts over the last six months to negotiate with Williams’ senior management.
Energy experts have been predicting more consolidation in the energy transportation sector, especially in natural gas given the huge reserves only recently unlocked by new drilling methods.
The deal would give ETE access to Williams’ assets in the Northeast. Most of ETE’s operations are in the Midwest and South.
Williams, based in Tulsa, Oklahoma, recently announced plans to acquire the remaining stake of Williams Partners LP that it doesn’t already own. ETE’s offer was contingent on Williams ending its plans to acquire Williams Partners.
© 2015 The Canadian Press