Southern Union Gets $4.9 Billion Buyout Offer from Williams Cos.
Friday, June 24, 2021 10:55 AM

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Southern Union Co. (NYSE: SUG) said Friday that it received a proposal from The Williams Companies Inc. (NYSE: WMB) to acquire all of the outstanding shares of Southern Union for $39.00 per share, or $4.9 billion in cash, in an effort to top a $4.2 billion bid by Energy Transfer Equity LP (NYSE: ETE).

The Williams offer is the latest unsolicited deal to be announced this year, as spurned suitors have more confidence to fight for their takeover targets. Shares in Southern Union have risen 18.5 percent since June 17, the day after the Energy Transfer deal was announced, closing on Thursday at $34.15, suggesting that investors had expected a higher offer to appear.

Energy Transfer responded to this new development, saying, that Williams floated a non-binding, conditional proposal to acquire Southern Union, in a fully-taxable transaction to SUG shareholders. ETE believes its binding agreement provides superior value to SUG shareholders as compared to the Williams proposal.

Southern Union said that its directors will review the proposal in due course, consistent with fiduciary duties and in accordance with the terms and conditions of Southern Union’s previously announced merger agreement with Energy Transfer Equity, L.P.

Shares of Southern Union jumped 15.23 percent to $39.35 in pre-market trading today, while shares of WMB lost 0.79 percent to $29 in pre-market trading. Shares of ETE last traded at $45.57, down 0.70 percent, on Thursday.