Jun
22
Wall Street Bets Energy Transfer-Williams Deal Is About to Die
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Traders speculate that Delaware Judge Will Rule for ETE
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Merger arbitrage spread jumped to a record high this week
Wall Street is placing bets that Energy Transfer Equity LP will defeat Williams Cos. in court and walk away from the companies’ multibillion-dollar merger without paying a breakup fee.
The spread traded by those speculating on whether the deal will fall apart reached a record high Wednesday after the pipeline giants spent two days sparring in Delaware’s Court of Chancery. Judge Sam Glasscock said Tuesday a key issue is whether lawyers from Latham & Watkins LLP, who were hired to assess the tax implications of the deal, acted in “good faith” when they concluded it was marred by complications.
Traders, it appears, think Williams didn’t prove otherwise…
Wall Street Bets Energy Transfer-Williams Deal Is About to Die
