Williams' Stock Soars after Rejecting Energy Transfer's $53.1B Offer

In a Monday note to investors, analysts at Simmons Energy Research said controlling Williams would be easier to accomplish before the consolidation closes.

“Clearly, [Energy Transfer’s] offer will complicate matters,” Simmons said. “Regardless of whether a higher bid emerges [Williams’] shareholders will need to be convinced that existing management will be able to deliver equal or greater shareholder value.”

For Williams’ MLP unitholders who appreciated in the 12 percent increase in the MLP’s price following the roll-up announcement, the unsolicited bid creates uncertainty, Simmons said.

“We would not be surprised if [Williams] shares enjoy a boost following the announcement based on the potential for a higher offer to materialize, but [the MLP] units could be pressured due to the uncertainty of future outcomes for unit holders,” the analysts said. 

The partnership’s units were trading down 7.68 percent by late Monday morning at $49.07 each.

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