Some say the proposed contentious merger between Tulsa’s Williams Companies and Energy Transfer Equity of Dallas is more like a shotgun marriage. Williams wants to force the deal by suing ETE while ETE wants to dump Williams on the altar.
Now days before a lawsuit by Williams Companies against Energy Transfer Equity goes to trial in Delaware, an ETE attorney says a judge should open what he called “disturbing” deposition testimony by Williams directors.
The lawsuit is over the $38 billion merger of the two companies that has turned into a fight that is scheduled to go to trial June 20-21 in Delaware chancery Court. Each has accused the other of lying about the merger. Williams’ suit is trying to force ETE to go ahead with the merger. ETE wants to drop the deal unless it gets a favorable tax opinion out of its attorney by June 28 after which the deal would expire. the opinion it wants is one that says the stock portion of the merger is not a taxable event to Williams shareholders.
The vote by Williams shareholders closes June 27. If they decide for a mixed election, each Williams share would be exchanged for 1.5274 shares of an ETE equivalent plus $8 cash. That could turn into a 27% premium to the current Williams Companies value.
