ETE terminates merger deal with Williams Companies
Energy Transfer Equity (ETE) won a court ruling on Friday that would allow the pipeline operator to walk away from its more than $20 billion takeover of rival Williams Companies.
As previously announced, on Friday, June 24, 2016, the Delaware Court of Chancery issued an opinion finding that ETE is contractually entitled to terminate the merger agreement with Williams in the event ETE’s counsel Latham & Watkins were unable to deliver a required tax opinion prior to the June 28, 2016, outside date in the merger agreement.
Latham advised ETE that it was unable to deliver the opinion as of the outside date. Consistent with its rights and obligations under the merger agreement, ETE subsequently provided written notice terminating the merger agreement due to failure of conditions under the merger agreement, including Latham’s inability to deliver the required tax opinion.
Williams said "Williams recognizes the practical fact that ETE has refused to close the merger. Williams has concluded that it is in the best interests of its stockholders to seek, among other remedies, monetary damages from ETE for its breaches." ■