Cracks Appear in Merger of Williams and Energy Transfer Equity
ByA supposedly ironclad $22 billion pipeline deal is showing some cracks. The Williams Companies said on Wednesday that it expected to cut its dividend if its sale to its rival, Energy Transfer Equity, fell through. Despite Energy Transfer’s attempts to renegotiate or wriggle out of the merger, Williams has held firm until now. The payout warning may be a tactic, but the target now seems to be admitting the possibility of failure.
Energy Transfer in September agreed to acquire Williams for what was originally a $33 billion cash and stock deal. That was before the sustained slump in oil prices savaged the stock prices of both companies, raising questions about the deal’s financial logic and the debt Energy Transfer is taking on to finance the transaction…
Cracks Appear in Merger of Williams and Energy Transfer Equity
