Thursday, February 20, 2014

Why Are Activists Targeting Williams Companies Inc?


The news came out last Friday that activists had raised their stake in Williams Companies (NYSE: WMB  ) . The activist firms of Corvex Management and Soroban Capital Partners had previously claimed a 5% position back in Dec. in hopes of pushing the large pipeline operator into consolidating the industry to spur growth.

The firms are so adamant that Williams has more potential that combined they've spent an astronomical $2.5 billion to build a near 10% position. The firms spent the previous week amassing around 1.2 million shares per day with limited impact to the stock. From a potential investor's standpoint, what strikes an interesting cord is that Williams doesn't appear to offer much value from the outside.

Read the full article here.


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