Williams Cos. says still working with Energy Transfer on deal solution

|About: Energy Transfer LP (ET)|By:, SA News Editor

Williams Cos. (WMB -9.3%) shares have dropped as much as 17% today thanks to Energy Transfer Equity's (ETE -6.8%) dilutive effort to raise cash to help fund its $14B-plus takeover of the company.

ETE disclosed the private offering in a filing after yesterday's close and said it had intended to offer the units to all of its shareholders, but WMB would not give its consent.

WMB says it has offered to work with ETE to find a solution to financing a deal that is more beneficial for both companies’ investors, and remains open to working collaboratively to improve the financial profile of both companies.

The spread between WMB's share price and the per share value of ETE's bid for WMB also widened significantly to ~19%, suggesting investor skepticism that the companies would be able to close the deal.

WPZ -2.4%, ETP -0.1%.

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