Hi Steve - ETE to Buy SUG at a 17% premium @$33.00/share.
I also sold my SUG a bit too early. Bought it at $20.00/share in 11/2009 and sold it at $23.54/share in 9/2010. My reason was that their dividend was not growing and was low compared to its peers. I forgot I originally bought it because of their premium pipeline assets.
Re: Southern Union Co. (SUG)
Energy Transfer Equity, L.P. En(NYSE: ETE )
Energy Transfer Gasses Up, Will Pay $33 A Share For Southern Union
MarketNewsVideo.com , 06.16.11, 12:35 PM EDT
Energy Transfer Equity (ETE) said today it has agreed to acquire Southern Union Company (SUG) for $7. 9 billion, including the assumption of $3.7 billion in debt.
forbes.com
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The company owns and operates one of the nation’s largest natural gas pipeline systems with more than 20,000 miles of gathering and transportation pipelines and one of North America’s largest liquefied natural gas import terminals.
Southern Union’s interstate pipeline interests operate more than 15,000 miles of pipelines that transport natural gas from the major producing areas to major markets in the Southeast, Midwest and Great Lakes region. Southern Union’s natural gas transmission units include Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Sea Robin Pipeline Company, Trunkline LNG Company (one of the nation’s largest LNG import terminals) and Southwest Gas Storage. Through CCE Holdings, LLC, Southern Union also owns an interest in and operates Florida Gas Transmission.
The $7.9 Billion price tag for SUG is 70% of the Market Cap of Energy Transfer Equity, L.P. En (NYSE: ETE ). The market seems to believe it is a good fit as ETE is up almost 6% on the news.
EKS |
