Williams Being Acquired?

[Conan71]

Two part follow up...

1. What if the high paying workers stay and form their own ventures?

2. Between this and the early 2000's debacle, doesn't it somewhat hold our city hostage?

As to your first notion, that is the best possible outcome if Williams were to leave.  Another major energy trader could emerge and provide new high paying jobs.  There's nothing to keep someone from leaving Williams now to do that though.  That would be far preferable, to see 700 or so new jobs created rather than trying to slowly replace 700 jobs lost from the economy.  Many other businesses depend on Williams and their employees for their well-being.  It's not just the 700 jobs that could be lost.

As to the second one, we've been hostage to American Airlines for as long as I care to remember.  Does that mean we'd be better off with them taking their millions in payroll elsewhere? 

Diversity is important in any local economy.  When you lose one of the pillars though, there are thousands of other people who depend on that business being in the economy.

[cannon_fodder]

The Wall Street Journal reported that shareholders were not really voting to approve the merger, they were voting on what kind of compensation they would prefer. 62% said they'd take as much cash as possible (which is what ETE doesn't want to/can't do).

http://www.wsj.com/articles/williams-shareholders-opt-for-ete-deal-1467036532

in that the judge made a factual determination, seems like a desperate measure. Maybe a gambit to try and get out with some ETE cash?

HEY DEWEY! You were congratulating yourself on talking the Williams Board into losing their lawsuit (or whatever), are you going to issue a retracting now that it is Williams who is doing all they can to try and kill the company?

[swake]

The Wall Street Journal reported that shareholders were not really voting to approve the merger, they were voting on what kind of compensation they would prefer. 62% said they'd take as much cash as possible (which is what ETE doesn't want to/can't do).

http://www.wsj.com/articles/williams-shareholders-opt-for-ete-deal-1467036532

in that the judge made a factual determination, seems like a desperate measure. Maybe a gambit to try and get out with some ETE cash?

HEY DEWEY! You were congratulating yourself on talking the Williams Board into losing their lawsuit (or whatever), are you going to issue a retracting now that it is Williams who is doing all they can to try and kill the company?

I don't think Williams is trying to kill the company, or sell it. They are trying to put themselves in the best position to sue ETE for damages. Williams is out close to a billion dollars on the killed merger with their subsidiary company alone.

[cannon_fodder]

I don't think Williams is trying to kill the company, or sell it. They are trying to put themselves in the best position to sue ETE for damages. Williams is out close to a billion dollars on the killed merger with their subsidiary company alone.

Don't let your likely scenario get in the way of my political bashing of the Mayor!

[Oil Capital]

The Wall Street Journal reported that shareholders were not really voting to approve the merger, they were voting on what kind of compensation they would prefer. 62% said they'd take as much cash as possible (which is what ETE doesn't want to/can't do).

http://www.wsj.com/articles/williams-shareholders-opt-for-ete-deal-1467036532

Not true.  On both counts.  The WSJ did not say what you are reporting and the shareholders were really voting to approve the merger.  More than 63% of all outstanding shares were voted in favor of approving the merger.  The preferred consideration was a separate choice made available to each shareholder.

[cannon_fodder]

Not true.  On both counts.  The WSJ did not say what you are reporting and the shareholders were really voting to approve the merger...

Here is what I said:

The Wall Street Journal reported that shareholders were not really voting to approve the merger, they were voting on what kind of compensation they would prefer

Here is what the Wall Street Journal said:

Last September, Energy Transfer agreed to buy Williams in a deal that valued Williams at $43.50 a share. Williams shareholders could elect to receive that compensation in cash and/or Energy Transfer stock, subject to proration. Williams said Monday that 62.3% of shareholders elected to receive it all in cash, 3.2% voted to get just Energy Transfer stock, 2.9% wanted a mix of cash and stock, and 31.6% failed to make a valid election.
. . .
Corrections & Amplifications:
Williams Cos. shareholders chose the form of compensation they would receive from the deal with rival Energy Transfer Equity LP. An earlier version of this article incorrectly stated that Williams shareholders had approved the deal.

http://www.wsj.com/articles/williams-shareholders-opt-for-ete-deal-1467036532

Now, I'm not saying the report is accurate or not. I don't really know. Which is why I said "the Wall Street Journal is reporting...." But in what way did I misstate the article?  To imply that I was fabricating something is a bit insulting.

[Hoss]

To imply that I was fabricating something is a bit insulting.

Consider the source...

[TulsaGoldenHurriCAN]

ETE cancels merger with Williams Cos.

Dallas-based Energy Transfer Equity announced in a filing just after midnight Wednesday that the company is calling off its merger with Williams Cos.
ETE said that it is basing the breakup in part on the inability of the company's tax attorneys to provide the proposed merger with a needed tax opinion.
A Delaware judge ruled Friday that ETE, one of the master limited partnerships in the group of energy companies helmed by Texas billionaire Kelcy Warren, could legally use the tax opinion as a basis for canceling its merger with Williams.
The relationship between ETE and Williams has grown contentious in the months since the energy companies agreed to the terms of an acquisition in September. While Warren has made no secret of his desire to call off the deal, the Williams Cos. Board of Directors had pledged to go through with it.
On Monday shareholders of the Williams company overwhelmingly voted in favor of closing the deal and combining with ETE.
Given the judge in the Delaware Court of Chancery's decision last week, ETE's announcement Wednesday that it is ending the merger is not unexpected as it has become clear that the deal is no longer financially palatable. 
However, Williams also announced Monday that it is filing an appeal in the Delaware Supreme Court of the Delaware Court of Chancery's ruling last week relating to the merger agreement between the two energy companies. It is unclear at this time what the impact of that appeals process will be on Energy Transfer Corp., the new company being created by the transaction.
The merger period ended June 28 according to the agreement the companies signed in September.

http://www.tulsaworld.com/business/energy/ete-cancels-merger-with-williams-cos/article_9ee6f9a6-dd8d-56fb-b51a-f0e43515c1f1.html

[TulsaGoldenHurriCAN]

A very transformative 24 hour span for Tulsa! With Blake Ewing's re-election, GT Bynum's election and the cancellation of the Williams acquisition, I feel like it was a very good 24 hours. I know some would have preferred other candidates, but I think we can all be glad Williams is sticking around!

[DowntownDan]

FWIW, the judges ruling appears to be heavily fact based. Basically, that the tax opinion is in doubt because of market forces - not because of shenanigans by ETE trying to weasel out of the deal (though he did say "a desperate man can win the lottery" in acknowledging them trying to get away).  That matters because factual determination are very hard to overturn on appeal.

I agree, it's a very, very low chance an appeals court would reverse.  The trial judge even mentioned in the decision the witnesses' demeanor during testimony as supporting credibility in ruling the way he did.  That's almost impossible to overturn on appeal.  The trial judge said that he'd have to find that an internationally renowned Biglaw firm like Latham and Watkins was being unethical to help one of its smaller clients while putting its reputation firm-wide on the line.  Seemed like a stretch to him and he believed the witnesses that they just couldn't in good faith give the required tax opinion.  Williams won't get its payout and is now out millions in attorney fees.

[LandArchPoke]

http://www.tulsaworld.com/business/energy/ete-cancels-merger-with-williams-cos/article_9ee6f9a6-dd8d-56fb-b51a-f0e43515c1f1.html

Every single one of those board members at Williams that voted and agreed to this merger should step down immediately and be replaced. They allowed Williams to be completely taken advantage of, and the biggest kicker is Williams has to pay a break up fee to it's MLP and to think that in the agreement there was no contingency - say if ETE didn't close for any reason they would at least have to refund that merger cancellation fee back? That's a common thing in merger agreements, yet a majority of Williams board thought hey who cares. Not only that, but they agree to a deal that left Williams zero room for leverage and gave it completely to ETE...

It's time to clean out Williams board of directors and replace it with some people who actual care about the company and want to see it grow.

[johrasephoenix]

"A very transformative 24 hour span for Tulsa! With Blake Ewing's re-election, GT Bynum's election and the cancellation of the Williams acquisition, I feel like it was a very good 24 hours. I know some would have preferred other candidates, but I think we can all be glad Williams is sticking around!"

For real.  And don't forget Vision and A Gathering Place and Santa Fe Square + The View + The Edge + OKPOP.... all kinds of positive stuff happening around town.

I'm still amazed at the election results.  Wow!

[Weatherdemon]

hey allowed Williams to be completely taken advantage of, and the biggest kicker is Williams has to pay a break up fee to it's MLP and to think that in the agreement there was no contingency - say if ETE didn't close for any reason they would at least have to refund that merger cancellation fee back?

I thought that ETE had to reimburse WMB on the WPZ merger cancellation fee? Around $420M.

[LandArchPoke]

I thought that ETE had to reimburse WMB on the WPZ merger cancellation fee? Around $420M.

Yes, that was part of the merger agreement that ETE was to reimburse them when the deal closed. Since ETE walked away, I believe Williams is now out that money as well. This is a complete and utter failure by a good portion of Williams board - which as monetarily damaging as this has been for the company, they should be replaced. Yesterday.

[TulsaGoldenHurriCAN]

Yes, that was part of the merger agreement that ETE was to reimburse them when the deal closed. Since ETE walked away, I believe Williams is now out that money as well. This is a complete and utter failure by a good portion of Williams board - which as monetarily damaging as this has been for the company, they should be replaced. Yesterday.

So as a side battle, ETE made their #1 competitor weaker?

Could ETE or another company now try to buy Williams again for a much lower price?