Energy Transfer Raises Bid For Southern Union

Energy Transfer Equity LP ETE lifted its bid for Southern Union Co SUG to $8.9 billion, including $5.1 billion in cash and ETE common units. Williams Co WMB last month made an unsolicited $39 per share offer for Southern, higher than $33 per share offer from Energy Transfer. Under the new offer, Southern Union shareholders can elect to swap their shares for $40 per share in cash or 0.903 ETE common units. The new price represents more than a 42% premium to the Southern Union's closing price on June 15. “We have listened to SUG shareholders and are providing a superior yet simpler transaction, including a significant cash component and the opportunity to benefit from ETE's upside through the ownership of ETE common units,” said Kelcy Warren, ETE's Chairman of the Board of Directors and largest unitholder. “The revised ETE / Southern Union agreement delivers superior value, highly compelling equity participation and certainty to close for SUG shareholders. The Southern Union board and I strongly believe that ETE is the right partner for Southern Union and that the combination of our companies is in the best interests of our investors, customers and employees.” ETE shares dropped 0.62% to close at $44.68 on Friday, while SUG shares gained 0.55% to close at $40.37 on Friday. WMB shares surged 1.65% to close at $30.75 on Friday. Read more from Benzinga's Company news.