US energy firm rejects pipeline tycoon's US$48b takeover offer

New York

WILLIAMS Cos has rejected a US$48 billion stock-based takeover offer from pipeline magnate Kelcy Warren that aims to derail a consolidation of the North American natural gas and oil hauler.

Williams hired banks to explore alternatives to the offer, that it said undervalued the group, according to a statement on Sunday that didn't identify the bidder. The offer of shares in a new unit was valued at US$64 a share, a 32 per cent premium to Williams' last close, Energy Transfer Equity LP said in a statement confirming it was the bidder. Including debt and other liabilities, the offer is worth US$53.1 billion, according to the statement.

Should a deal be done it would rank near the largest in the pipeline industry. The biggest so far is Kinder Morgan Inc's consolidation of its partnership assets last year that was valued at US$48.9 billion whe…