Enterprise Walks Away From Williams

(RTTNews) - Pipeline company Enterprise Products Partners L.P. (EPD) said Thursday that it has withdrawn its takeover bid for rival Williams Companies, Inc. (WMB), citing a lack of engagement by Williams. With this, Williams has lost a second suitor in a span of just more than two months.

"Jim" Teague, chief executive officer of Enterprise's general partner said, "As a result of rumors with respect to our proposals, as well as the lack of engagement by Williams, we have determined that there is no actionable path forward toward an agreement. We, therefore, have withdrawn our non-binding proposals."

Enterprise said that generally, it does not comment on market rumors or speculation. However, due to recent news leaks, movements in the price of the partnership's common units as well as questions from investors, it decided to withdraw its indication of interest in Williams.

In response, Williams said in a separate statement that it was surprised by Enterprise's announcement. The company added that since July, it had a series of exchanges with Enterprise regarding a potential combination.

According to Williams, its board, including three directors, with the help of legal and financial advisors, was engaged in the process of carefully reviewing the most recent indication of interest from Enterprise.

In late June, Equity Transfers Equity L.P. (ETE) said it has terminated its merger deal with Williams. Following the failed merger, Williams is facing a proxy fight with a large investor.

Six members of Williams' board resigned in early July following a failed attempt to oust the company's Chief Executive Officer Alan Armstrong.

In late August, Williams said appointed three new independent directors to its board, with immediate effect. But activist investor Keith Meister of Corvex Management LP nominated a slate of directors to replace the entire board. Meister was one of the six board members of Williams who resigned in July.