Williams rejects unsolicited bid from Energy Transfer Equity

Williams Cos. Inc., Tulsa, has rejected an unsolicited all-equity acquisition proposal valued at $53.1 billion from Dallas-based Energy Transfer Equity LP (ETE), but has announced the exploration of “strategic alternatives,” including “a hypothetical merger or sale.”

The bid was for the purchase of Williams at $64/share, which Williams’ board found “significantly undervalued” the company.

Most recently, Williams’ subsidiary Williams Partners LP agreed to buy an additional 21% interest in Utica East Ohio Midstream LLC from EV Energy Parnters LP for $575 million (OGJ Online, Apr. 6, 2015).

If it transpired as outlined, ETE’s acquisition of Williams would represent the largest midstream and master limited partnership transaction ever, and would have created the largest midstream entity and third-largest energy group of any kind in North America.