Energy Transfer Equity LP (NYSE:ETE) announced that it has terminated its merger agreement with The Williams Companies, Inc.(“Williams”) effective June 29, 2016.
As previously announced, on Friday, June 24, 2016, the Delaware Court of Chancery issued an opinion finding that ETE is contractually entitled to terminate the merger agreement with Williams in the event ETE’s counselLatham & Watkins LLP (“Latham”) were unable to deliver a required tax opinion prior to the June 28, 2016, outside date in the merger agreement. Latham advised ETE that it was unable to deliver the opinion as of the outside date. Consistent with its rights and obligations under the merger agreement, ETE subsequently provided written notice terminating the merger agreement due to failure of conditions under the merger agreement, including Latham’s inability to deliver the required tax opinion, as well as the other bases detailed in ETE’s filings in the Delaware lawsuit referenced above.
Williams has appealed the decision by the Delaware Court of Chancery to the Delaware Supreme Court. (Original Source)
Shares of Energy Transfer are up 4% to $14.99 in pre-market trading. ETE has a 1-year high of $33.06 and a 1-year low of $4. The stock’s 50-day moving average is $13.06 and its 200-day moving average is $9.89.
On the ratings front, Energy Transfer has been the subject of a number of recent research reports. In a report issued on June 27, Jefferies Co. analyst Christopher Sighinolfi maintained a Buy rating on ETE. Separately, on April 20, Gimme Credit ‘s Phil Adams downgraded the stock to Sell .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Sighinolfi and Phil Adams have a total average return of 6.3% and -13.1% respectively. Sighinolfi has a success rate of 61.5% and is ranked #465 out of 3980 analysts, while Adams has a success rate of 50.0% and is ranked #2835.
Energy Transfer Equity LP provides natural gas pipeline transportation and transmission services. The company operates its business in seven segments: Interstate Transportation and Storage, Midstream, NGL Transportation and Services, Retail Marketing, Investment in Sunoco Logistics, Investment in Regency and Corporate and Other.