Wednesday, June 24, 2015

How Can Williams Turn Down A $64 Offer?


  • Williams rejects unsolicited bid for $64 and plans to explore strategic alternatives.
  • Energy Transfer Equity proposes that a merger with Williams will provide a higher dividend and growth.
  • The lack of details from Energy Transfer Equity makes it difficult to understand how it can propose a higher dividend after shifting to a C corp.
  • The proposed offering doesn't provide much of a premium to where Williams likely trades in 2016 as a standalone stock.
On the headlines only, it is initially difficult to see how a $48 stock could turn down a $64 offer. In the case of Williams Companies (NYSE:WMB), the executives did just that.

Read the full article on Seeking Alpha.


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