Williams reiterates commitment to merger with Energy Transfer

By Tess Stynes

Williams Cos. said that it remains committed to closing its $32.6-billion merger with Energy Transfer and that it expects the deal will be completed in the first half of this year, despite more signs of stress between the pipeline companies last week.

Williams said the "shortest case scenario" for a required vote of Williams holders on the deal could be around April 20. A company executive made the comments in a town-hall meeting with employees, according to a filing with the US Securities and Exchange Commission.

Last week, Energy Transfer issued convertible units to certain investors, including the company's CEO, Kelcy Warren, to raise funds to help cover the $6 billion it will owe Williams investors when the deal closes. Energy Transfer had proposed a convertible unit offering that would have been open to the public, but it met resistance from Williams.

According to Williams' SEC filing on Monday, CEO Alan Armstrong, responding to a question in the town-hall meeting, also said the company is "keeping our eye towards making sure that we would know what we would do in a standalone situation." He added that on "a standalone basis, we'd be healthy and thriving and continue to do the very best in the circumstances."

Regarding the possibility of reopening its deal to acquire affiliate Williams Partners, Mr. Armstrong said it is "very hard to say exactly how that would roll out at this point, just given how unsettled the capital markets are."

"So that is not something that we would act on immediately, likely, and we would probably review what all our options were on that front," Mr. Armstrong said.

Shares of Williams Cos. slipped 0.8% to $15.88 in morning trading in New York, while Energy Transfer shares rose 0.6% to $6.86.

Williams last year resisted Energy Transfer's initial buyout overture but eventually accepted a lesser price amid slumping energy stocks.

Energy companies had a rough ride in 2015, with natural gas and oil prices plummeting.

Many pipeline companies had said they were mostly insulated from low energy prices because most of their revenue is based on fixed fees. However, in recent quarters, signs that the pipeline industry isn't immune to the commodities rout have slammed the sector's stocks.

Dow Jones Newswires

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