Southern Union accepts Energy Transfer’s $5.7 billion bid

July 20, 2011 | Budget & Investment

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Southern Union is agreeing to be acquired by Energy Transfer Equity for $5.7 billion, eclipsing a bid from rival Williams Cos. The cash-and-stock offer works out to $44.25 per share. The deal is worth a total of $9.4 billion, including debt.

Energy Transfer Equity LP and rival Williams Cos. have been battling for the Houston pipeline company for over a month. Energy Transfer Equity, which is based inDallas, offered $33 per share for the company in mid-June. A week later, Williams offered $39 per share. Earlier this month, Energy Transfer Equity raised its bid to $40 a share.

Then last week, Williams made its last offer — $44 per share. Dallas-based Energy Transfer said it will sell some businesses to appease regulators and get the deal approved quickly.