Williams

Yesterday Williams published a letter from Institutional Shareholder Services (ISS)–a “leading proxy advisory firm”–recommending that shareholders in Williams should vote “yes” on the merger with Energy Transfer Equity (ETE). Williams will hold a special shareholder’s meeting on Monday, June 27, to vote on the proposed merger. Even if a majority votes in favor of the merger–far from a foregone conclusion–it’s still not a done deal. ETE continues to assert that expert opinions on the taxability of the merger may scuttle the deal. Just a few weeks ago ETE sued Williams to abort the deal (see Midstream Soap: ETE Sues to Walk Away from Williams Takeover Deal). We view all of this–voting for the merger, etc.–as posturing. Fodder for the lawyers to use after the deal fails to consummate. Here’s the latest in our ongoing soap opera that we call, As the (Midstream) World Turns…
Read More “Williams Tries, One Last Time, to Garner Support for ETE Merger”

As MDN reported on Friday, the Federal Trade Commission has granted conditional approval of the Energy Transfer Equity (ETE)/Williams merger deal. The one condition FTC made is that Williams must sell its 50% ownership in Gulfstream Natural Gas System LLC, located in Florida (see As the (Midstream) World Turns: FTC Approves ETE/Williams Merger). ETE has been looking for a way to back out of the deal without losing its shirt in the process. So the question becomes, Will ETE use the FTC condition to scuttle the deal? Or at a minimum, use it to drive Williams back to the table to renegotiate the deal?…
Read More “Will ETE Use FTC’s “Condition” to Scuttle Proposed Williams Merger?”

Last week three former CEOs of the Williams Companies sent a letter to Williams shareholders outlining their reasons for voting against the proposed merger with Energy Transfer Equity (copy of the letter embedded below). The CEOs urge all shareholders to “strongly consider” voting against the deal. The CEOs say the deal would give Williams shareholders a permanent second class status. The mayor of Tulsa, Oklahoma–where Williams is headquartered–is also voicing his opposition to the proposed merger. Mayor Dewey Bartlett Jr. said in his own letter that the merger has no “economic merit” and would be “tragic” for both the city shareholders. MDN told you yesterday we’re dubious the deal will actually happen, based on all of the legal posturing we see (see ETE & Williams Engage in More Posturing Before June 24 Deadline). Will the letter from the CEOs and Tulsa mayor have any effect on the deal?…
Read More “Tulsa Mayor, 3 Former Williams CEOs Blast ETE Merger Deal”

The ongoing soap opera of whether or not Energy Transfer Equity really will buy Williams continues to play out. Yesterday ETE (and Williams) issued press releases announcing that Williams shareholders have until 5 pm on June 24 to provide their official voting documentation on the merger. ETE is careful to point out that Williams shareholders should hold on to their shares–not turn them in–until the merger is official and completed. ETE also says once they’ve voted on the merger, Williams shareholders can’t turn around and sell their Williams shares of stock until the final merger is either declared a “go” or a “no go.” The elaborate ands, ifs & buts in the ETE statement still leaves us wondering whether or not this is all just kabuki theater–a show–with no real intention of closing on the merger. Case in point: here’s what ETE’s lawyers said in yesterday’s announcement…
Read More “ETE & Williams Engage in More Posturing Before June 24 Deadline”