No comments on the merits price wise of any possible transaction because no details given.
What I can say is that having successive offers gives credence to the value of the assets at WMB and that the current share price does not accurately reflect that value. Given a $43/share offer was accepted from $ETE last year, I have a hard time believing management would even consider a deal at current levels unless the premium was very substantial and the closing was quick and 100% guaranteed.
Reuters:
Enterprise Products Partners LP (EPD.N) approached Williams Companies Inc (WMB.N) earlier this summer about combining their businesses, two of the largest U.S. oil and gas pipeline operations, people familiar with the matter said.
Merging Williams’ natural gas liquids business in the northeastern United States with Enterprise’s ATEX pipeline, which runs from that region to Texas, could generate significant revenue and cost synergies for Enterprise.
The approach came as oil prices began to recover from a steep slump. Its timing suggests that Enterprise was looking to take advantage of Williams’ depressed share price as well as upheaval at its board.
Enterprise’s approach came after peer Energy Transfer Equity LP (ETE.N) terminated its merger agreement with Williams in June after a prolonged legal battle.
The value of Enterprise’s offer could not be learned. However, a rise in Williams’ shares in the past two months means the offer currently carries little or no premium, one of the people said. Williams never made an official response to the approach, that source added.
Enterprise has not pursued the matter further either, the source said.
The sources asked not to be identified because the discussions were confidential. Williams and Enterprise declined to comment.
Since the deal with Energy Transfer broke up, Tulsa, Oklahoma-based Williams has laid out plans to move forward as a stand-alone company while investing more than $1.5 billion in its master limited partnership, Williams Partners LP (WPZ.N). Williams and Williams Partners have taken steps to sell assets to reduce their debt loads.
Shares of Williams rose as much 11 percent after Reuters was first to report on Enterprise’s approach and ended trading on Thursday up 7.8 percent at $28.11. Enterprise shares closed down 2 percent at $27.02, giving the company a market capitalization of $57 billion.