Seeking Alpha

In an attempt to simplify its structure, Energy Transfer Partners (ETP) agrees to acquire from...

In an attempt to simplify its structure, Energy Transfer Partners (ETP) agrees to acquire from Energy Transfer Equity (ETE) its interest in ETP Holdco for $1.4B in cash and $2.35B of newly issued ETP common units. ETP Holdco is the entity formed by ETP and ETE in 2012 to own the equity interests in Southern Union (SUG) and Sunoco (SUN).
Comments (5)
  • jack20
    , contributor
    Comments (300) | Send Message
     
    A very smart move. This stock has a very bright future. I own it at $43. Next on the agenda will be a dividend increase!
    21 Mar 2013, 08:24 AM Reply Like
  • azretiree
    , contributor
    Comments (2) | Send Message
     
    $2.35B in additional common units is a big dilution to existing unit holders. Unless income from the acquired businesses can offset, look for a drop in both price and distributions.
    21 Mar 2013, 11:53 AM Reply Like
  • BrutalHonesty
    , contributor
    Comments (395) | Send Message
     
    Within 2 years ETP will buyout ETE as the other MLPs have done for another 10-20% pop.
    21 Mar 2013, 09:46 AM Reply Like
  • esnoyer
    , contributor
    Comments (2) | Send Message
     
    And so, dow ETP current unit holders receive new shares of the new entity???
    21 Mar 2013, 10:19 AM Reply Like
  • wpwillie
    , contributor
    Comments (4) | Send Message
     
    M* has changed ETE from 3 to 4 stars.
    21 Mar 2013, 11:55 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector