Energy Transfer in new $5.1B Southern Union deal

[July 05, 2011]  DALLAS (AP) -- Energy Transfer Equity LP says it has reached a new $5.1 billion deal to buy pipeline company Southern Union Co. after increasing its offer in order to trump rival bidder Williams Cos. Inc.

Energy Transfer said Tuesday that the transaction includes a combination of cash and common units. Southern Union shareholders can exchange their stock for $40 per share or 0.902 Energy Transfer common units.

The maximum cash portion of the deal is 60 percent, while the common unit component may vary between 40 percent and 50 percent.

Including debt, the deal is worth $8.9 billion.

The announcement comes shortly after Williams' unsolicited $39-a-share all-cash bid, which was valued at about $4.9 billion in late June. Energy Transfer had initially offered $33 per share in stock, or $4.2 billion.

[Associated Press]

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