Energy Transfer Confirms Offer To Merge With Williams Cos.

ETE stated in its proposal that it did not foresee any regulatory impediments to the merger and that it would accept the regulatory risk related to the closing. In addition, ETE noted there would be no requirement for an ETE unit holder vote, providing certainty to Williams’ stockholders. Kelcy Warrens, ETE chairman, said, “I have not been supportive of transactions that involve the issuance of ETE units given my belief that ETE units remain significantly undervalued. However, I believe that a combination of Williams’ assets with ETE will create substantial value that would not be realized otherwise. Therefore, I am a strong proponent of this transformative combination and support the issuance of a significant amount of ETE securities to complete the transaction.”

In response to the merger offer, Williams declined, saying that its board of directors has authorized a process to explore a range of strategic alternatives following the receipt of ETE’s unsolicited proposal. With the assistance of its outside financial and legal advisors, the Williams board said it had carefully considered the ETE offer and determined that it significantly undervalues Williams and would not deliver value commensurate with what Williams expects to achieve on a standalone basis and through other growth initiatives.

“Our board and management team remain committed to acting in the best interests of our shareholders, and in light of the unsolicited proposal, our board believes it is in the best interest of shareholders to conduct a thorough evaluation of strategic alternatives,” said Alan Armstrong, president and CEO of Williams. “Williams’ premier infrastructure connects the best natural gas supplies to the best markets, and our strategy has provided substantial shareholder value, allowing us to deliver a compound annual dividend growth rate of approximately 30% since we embarked on our strategy in 2012.”