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Williams (WMB) -3.1% AH after announcing a 26M share stock offering, good for proceeds of $795M...

Williams (WMB) -3.1% AH after announcing a 26M share stock offering, good for proceeds of $795M based on today's close. Williams says it will use the proceeds to buy additional common units of subsidiary Williams Partners (WPZ), in order to finance the latter's acquisition of Caiman Midstream. (PR)
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  • flumeride
    , contributor
    Comments (333) | Send Message
     
    Okay, I'm a little confused here. I get the first part

     

    a) WMB issued new shares to raise funds.
    b) WMB used those funds to buy additional units of WPZ.

     

    So, did WPZ issue additional units for this sale? or will WMB buy existing units on the free market. If so, then how does that raise extra cash for WPZ. Now if WPZ issues new units, then that must dilute existing units.

     

    I ask this because I've notice that since the announcement of the Caiman Midstream acquisition that WMB has been rising and WPZ has been falling. Perhaps this explains why.
    29 Mar 2012, 05:04 PM Reply Like
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