ENERGY TRANSFER PARTNERS (NYSE:ETP): 9 analysts have set the short term price target of ENERGY TRANSFER PARTNERS (NYSE:ETP) at $64.89. Investors did not favor the buyer either.
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The new ETC common shares will pay common dividends equal to ETE distributions, and will in fact be backed by ETE units held by an incorporated ETE subsidiary.
The current deal has valued Williams at $43.50 per share.
Kelcy Warren, ETE’s chairman, says, “I am excited that we have now agreed to the terms of this merger with Williams”.
A previous deal with Williams Partners LP has been terminated.
Notably, the notion of canceling the WMB-WPZ merger was earlier rejected by Williams.
ETE management said its balance sheet, combined with the footprint of Williams, will “benefit customers by enabling further investments in capital projects and efficiencies that would not be achievable absent the transaction”.
The companies said Monday that the combination creates one of the five biggest energy companies in the world. The company has a market cap of $20,194 million and the number of outstanding shares have been calculated to be 509,953,000 shares.
Williams Companies announced the company is selling to Energy Transfer Equity – a company in Dallas. A designer via preparing, he has incorporated Energy Transfer with one of the top oil and gas transportation companies by securing companies including Sunoco Inc. what’s more, Southern Union. The company has been rated as hold from 1 Wall Street Analysts. The stock was bought at an average price of $63.10 per share, for a total transaction of $39,399,640.00. ETP is managed by its general partner, Energy Transfer Partners GP, L.P. (General Partner or ETP GP), and ETP GP is managed by its general partner, Energy Transfer Partners, L.L.C. (ETP LLC), which is owned by Energy Transfer Equity, L.P., another publicly traded master limited partnership (ETE).
Even so, Williams was able to extract important improvements on the original Energy Transfer offer.
ETC will be treated as a corporation for USA federal income tax purposes, and holders of ETC common shares will therefore receive an IRS Form 1099, rather than a Schedule K-1, for federal income tax reporting.
Many analysts have commented on the company rating. Also, this should positively impact the partnership’s credit rating.
Energy Transfer estimates $300 million to $400 million in annual cost savings as a result of the deal by 2017. Its 52-week low range is $26.00 and the 52-week high range approaches $40.00.
Williams’ shareholders are upset about the reduced value of the deal that lost them money.
ON 28 September, Williams Partners L.P. (NYSE:WPZ) announced an agreement with The Williams Companies, Inc.
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Frank T. MacInnis, Chairman of the Williams Board of Directors, said, “After a comprehensive evaluation of strategic alternatives, including extensive discussions with numerous parties, the Williams Board of Directors concluded that a merger with Energy Transfer Equity is in the best interests of Williams’ stockholders and all of our other stakeholders”.
