TEPPCO Partners LP shares closed up 6.3 percent on April 29 at $27.74 after the company’s board rejected a $2.3 billion buyout offer from Enterprise Partners LP. However, TEPPCO said it would consider another offer "that appropriately recognizes the value" of the company.
TEPPCO – the initials originally stood for Texas Eastern Products Pipeline Co. - formed a special committee to review the offer after it was initially submitted last month.
In order to evaluate the offer by Enterprise, the Audit, Conflicts and Governance Committee of TEPPCO's general partner, Texas Eastern Products Pipeline Company, LLC, formed a special committee of independent directors consisting of Donald H. Daigle, Irvin Toole, Jr. and Duke R. Ligon. After considering Enterprise's offer, the special committee unanimously concluded that it did not support the offer as it now stands and had advised Enterprise of its decision. The Houston-based owner of 36,000 miles of onshore and offshore pipelines said the deal values TEPPCO at $21.89 per unit, a premium of 4.8 percent, based on the 10-day average closing prices of TEPPCO units and Enterprise common units on March 6, the business day prior to the date on which Enterprise initially made the proposal to TEPPCO, shares of which closed at $26.15 on April 28.
Texas Eastern Products Pipeline Co. LLC, general partner of TEPPCO Partners LP, is owned by Enterprise GP Holdings.
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