Williams begins litigation against ETE and CEO Warren to protect stockholder rights

The Williams Companies Inc. (NYSE: WMB) has begun litigation against Energy Transfer Equity LP (NYSE: ETE) and Kelcy Warren, CEO and chairman of the board of ETE, in response to the private offering of Series A convertible preferred units that ETE disclosed on March 9.

The litigation against ETE in the Delaware Court of Chancery seeks to unwind the private offering of Series A convertible preferred units. The litigation against Warren in the district court of Dallas County, Texas, is for tortious, or wrongful, interference with the merger agreement executed on Sept. 28, 2015, as a result of the private offering of Series A convertible preferred units.

The Williams board issued the following statement:

The Williams board is unanimously committed to enforcing its rights under the merger agreement entered into with ETE on Sept. 28, 2015, and to delivering the benefits of the merger agreement to Williams’ stockholders. ETE has no basis to avoid its obligations under the merger agreement.

Williams has reviewed ETE’s private offering of convertible preferred units and concluded it is a breach of the merger agreement. Among other things, the offering provides select ETE investors with preferential treatment on ETE distributions.

Williams has commenced litigation to protect the interests of its stockholders. The litigation is intended to ensure that Williams’ stockholders will receive the consideration to which they are entitled under the merger agreement.

Williams is committed to mailing the proxy statement, holding the stockholder vote and closing the transaction as soon as possible.

Williams remains committed to working with ETE to ensure the financial strength of the combined company, provided that all ETE and Williams investors are treated fairly and equitably. Williams looks forward to completing the transaction and delivering its benefits to the Company’s stockholders.

The Williams board has not changed its recommendation "FOR" the merger agreement executed on Sept. 28, 2015. In addition to the receipt of Williams’ stockholder approval, the transaction remains subject to other customary closing conditions. Integration planning is underway. The transaction is expected to close in the second quarter of 2016.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Related Articles

Even as the number of jobs available has increased in recent years, one of the most significant concerns about the strength of the American labor market was wage stagnation.

Know The Marketplace As Incomes Rise

Smile. Breathe. Stay confident. Just be yourself. These are the four key pieces of advice we’ve all heard before going into a job interview. But how do any of these tips help showcase your true personality when nerves kick in?

How to beat the nerves and show your true self in an interview

Like many hungry job seekers, Kevin has spent a good portion of his job hunt on social media.

Which Social Media Activities Actually Matter in the Job Search?

Tune into the ongoing NCAA Tournament, and you are sure to see an advertisement that proclaims,