By Greg Hazley
Brunswick and Joele Frank, Wilkinson Brimmer Katcher are on opposite sides as two companies vie to acquire Houston-based pipeline operator Southern Union Company in a multibillion-dollar deal.
Tulsa-based natural gas provider Williams threw a wrench in a merger deal between Southern Union and Dallas-based Energy Transfer Equity when it announced a hostile, $4.9B bid for SUC this week, following a $4.1B deal made June 16 by Energy Transfer Equity which was accepted by Southern Union’s board.
Williams, which has enlisted JFWBK partners Joele Frank and Andrew Siegel in New York as well as the shareholder firm Georgeson to help make its case, said its $39-per-share offer is an 18% premium over ETE’s proposal at $33-per-share.
ETE, meanwhile, is working with Brunswick partners Steve Lipin (New York) and Mark Palmer (Dallas), as well as shareholder outreach firm Mackenzie Partners and Dallas PR shop Granado Communications Group.
ETE is making the case this week that Williams’ offer is a “fully-taxable transaction” to Southern Union shareholders, while the ETE is a tax-deferred structure. It also says that William’s claim that ETE’s offer is only $33-per-share is incorrect.
Southern Union said in a statement June 23 that it received the Williams pitch, adding that it will be reviewed “in due course” consistent with the terms of its previously announced merger deal with ETE.
SU shares were up more than 15% in trading as the markets opened June 24. First quarter revenue was down slightly at $746.8M on net income of $60.7M.
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