Reuters: Energy Transfer has held talks to sell Sunoco

|By:, SA News Editor

Energy Transfer Equity (NYSE:ETE) has held talks to sell gas station and convenience store operator Sunoco (NYSE:SUN), in a deal that could fetch more than $2B, Reuters reports.

A 36.4% stake in the limited partnership in SUN owned by Energy Transfer Partners (NYSE:ETP) also would have been divested, according to the report.

While the discussions were preliminary, they show ETE's efforts to improve its balance sheet after the plunge in oil prices made its pending acquisition of Williams Cos. (NYSE:WMB) more financially burdensome than it had expected.

The talks about a sale reportedly did not advance further because of disagreements over SUN's valuation, but ETE could still revisit the issue if it receives new interest.

Mentioned in the report as potential buyers of SUN's network of 900 convenience stores and fuel outlets are Valero Energy (NYSE:VLO), Tesoro (NYSE:TSO) and Alimentation Couche-Tard (OTCPK:ANCUF).

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