Williams rejects $48-billion takeover bid by pipeline rival Energy Transfer

By MATTHEW MONKS and JAMES PATON
Bloomberg

Williams Cos. rejected a takeover offer from Energy Transfer, according to people familiar with the deal. The bid valued the North American pipeline operator at about $48 billion.

Williams hired banks to explore alternatives, the company said in a statement that didn’t identify who the offer was from. That offer depended on Williams abandoning its own pending purchase of all the units in Williams Partners for about $14 billion, the company said.

The offer of $64/share “significantly undervalues Williams and would not deliver value commensurate with what Williams expects to achieve on a standalone basis,” according to a statement from the company. Spokespeople for Energy Transfer and Williams didn’t return calls for comment.

Williams hired Barclays and Lazard to assist in its review of strategic alternatives, including a potential merger, sale of the company or continued pursuit of the existing operating and growth plan.

“Our board believes it is in the best interest of shareholders to conduct a thorough evaluation of strategic alternatives,” Alan Armstrong, CEO of Williams, said in the statement.

Williams Partners owns or operates more than 33,000 miles (53,000 kilometers) of natural gas and natural gas liquids pipelines. Williams first sold units in the partnership to the public in 2005.

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