One of the lawsuits filed by Williams Cos. against Energy Transfer Equity in their muddy merger battle did not go to trial on Monday in Delaware as scheduled. Instead, the two firms agreed to a dismal and ETE of Dallas said it would pay $170,000 to cover court fees of Williams.
Williams sued ETE in April after the two firms announced a planned merger last fall. Over the course of the several months, things became sticky between the two. The lawsuit filed by Williams alleged ETE violated the agreement by issuing series A convertible preferred units worth nearly $6 billion. The suit by the Tulsa-based company said such an offering would give ETE shareholders preferential treatment on distributions.
While dropping the lawsuit in the past few days, Williams still has the option to re-file the suit because it was dismissed with prejudice.
The merger will still need to be approved by shareholders who vote on June 27. The Williams Cos.’ directors have already approved the merger.