(MENAFN- ProactiveInvestors) There is to be consolidation in the North American oil pipeline sector with (NYSE:WMB) cosying up to Energy Transfer Equity (NYSE:ETE).
Energy Transfer Equity is to take over Williams in a US$37.7bn deal that will create the third largest energy franchise in North America.
It marks an about-turn by Williams which three months earlier had spurned an offer from Energy Transfer worth US$53.1bn.
The stock plus cash terms value each Williams share at US$43.50 a share which was a premium to Friday night's closing value of US$41.60 per share for Williams.
Contrary to normal form Williams shares fell sharply on news of the bid sliding US$4.12 to US$37.48; Energy Transfer shares shed 11% at US$20.85.
A condition of the agreed bid is that Williams drops its plans to buy out the 34% minority stake in its subsidiary Williams Partners which will now receive US$428mln in break fees from .
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