Without revealing the name of ETE, Williams said that it has received an unsolicited offer at $64 a share, which it considers to ‘significantly undervalue Williams’.
Williams said: "The Williams board carefully considered the unsolicited proposal 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, including the pending acquisition of WPZ."
The company has retained Barclays and Lazard to help it search for alternatives, including a merger, a sale or continuing to pursue the company’s existing operating and growth plan.
The North American company’s gas pipeline and domestic midstream interests are majorly owned through its subsidiary Williams Partners (WZP). It owns a 66% interest in WZP, and has recently agreed to buy the remaining stake for over $13bn.
ETE confirmed today that it has made an all-equity offer for $53.1bn, including the assumption of debt and other liabilities.
The initial offer was made in May, and was renewed last week.
ETE said in a statement that it has made multiple attempts in the last six months to engage in ‘meaningful, friendly dialogue’ with Williams.
"Unfortunately, until Williams’ announcement today, Williams’ management has inexplicably ignored ETE’s efforts to engage in a discussion with Williams regarding a transaction that presents a compelling value proposition for its stockholders," it added.
Texas-based ETE owns 71,000 miles of natural gas, natural gas liquids (NGLs), refined products, and crude oil pipelines in the US.
Image: Williams owns gas pipeline and domestic midstream businesses. Photo: courtesy of Supakitmod / Freedigitalphotos.net.
