Barclays analysts also are out questioning the recent announcement that Loews Corp. (NYSE:L) may exercise its call rights under its partnership agreement with Boardwalk Pipeline (BWP +4.8%), which the firm says "caught the market off-guard."
Barclays believes Loews should have received a legal opinion and announced it was buying BWP, "rather than just tease the market that they were ’seriously considering’ it, putting pressure on the stock and in essence, trying to time the potential purchase at a time that would be most favorable to them."
BWP looks to be the only limited partnership at risk from limited call rights, although the issue highlights the "relatively poor corporate governance" in the MLP sector, the firm says.
BWP shareholder TAM Capital earlier today accused Loews of "a brazen attempt to effect a buyout of the company for a fraction of its fair value and in contravention of terms and intent" of the MLP agreement.
Source: Bloomberg First Word
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