Enterprise Products to Buy Teppco for $3.3 Billion |
| Bloomberg - Jun 29, 2009 |
Enterprise Products Partners LP agreed to buy Teppco Partners LP for about $3.3 billion, combining pipeline operators controlled by Houston billionaire Dan Duncan to create the biggest U.S. energy partnership.
Owners of Teppco will receive 1.24 units of Enterprise for each of their units, valuing the partnership 15 percent higher than when an initial offer was made in March, according to a statement today by the partnerships. The transaction is worth $31.36 per unit, 9.3 percent higher than Teppco’s closing price at the end of last week.
The partnerships, both based in Houston, will combine to own almost 48,000 miles (77,000 kilometers) of pipelines and will access the largest producing basins of natural gas, gas liquids and crude oil in the U.S., according to the statement. The takeover will be accretive to Enterprise’s earnings, starting in 2010, and will yield at least $20 million in cost savings, Enterprise Chief Executive Officer Michael Creel said in the statement.
Read Full Article from Bloomberg
- Posted: 2009-06-29 07:19:54
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