Lawsuit Challenges Williams’ Merger

While speculation mounts whether the merger between Williams Cos. in Tulsa and Energy Transfer Equity in Dallas might fall apart, a shareholder in the Tulsa-based Willias Cos. has filed a class-action lawsuit against both firms. It was filed by John Bumgarner in Tulsa federal court and seeks a court order to stop the proposed merger as well as dissemination of proxy materials and the conduct of a special meeting of shareholders of Williams.

Bumgarner retired from Williams in 2001 after working 25 years with the company. He was senior vice president of planning and development as well as president of Williams real estate and president of Williams International.

Bumgarner describes himself as a longtime stockholder and in his lawsuit alleges there have been misrepresentations of the deal’s “purported benefits” to shareholders of Williams.

“Certain of the statements therein, as stated hereafter, are material misrepresentations made by Williams and ETE, or by ETE and the publication of the material misrepresentations was aided and abetted by Williams,” stated the lawsuit.


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