Energy Transfer Equity LP said it will pursue a
multibillion-dollar deal to acquire rival pipeline operator
Williams Cos. with or without the company's cooperation.
Energy Transfer had been quietly pursuing Williams for six
months when the pipeline company rejected an all-equity offer
valued at $48 billion last month. Now Energy Transfer, run by
Dallas billionaire Kelcy Warren, is signaling that it may be
willing to go in a hostile direction with its takeover bid.
In a statement issued late Tuesday, Energy Transfer was critical
of how Williams has responded to its proposal and reiterated its
offer—an offer Williams has already deemed too low.
The company "continues to be open to engaging in the strategic
alternatives process announced by Williams, but only if it is fair
and evenhanded and is not designed to disadvantage" Energy
Transfer, the statement said.
If Williams continues to rebuff Energy Transfer's overtures, the
company said it would take whatever steps are necessary to make its
proposal a reality, including trying to derail a $13.8 billion deal
Williams announced in May to streamline its own corporate structure
by buying a subsidiary.
"The Williams Board of Directors and management team are
committed to acting in the best interests of shareholders, and
believe a robust, competitive process is the best way to maximize
shareholder value," the company said late Tuesday.
Williams is working with several companies, including Energy
Transfer, and has had constructive dialogue with each of them,
according to a person familiar with the matter.
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