Williams Cos appealing court order allowing ETE to walk from deal
NEW YORK, June 27 (Reuters) – Williams Cos Inc shareholders voted on Monday for the pipeline company’s agreed upon takeover by rival Energy Transfer Equity, while Williams appeals a court ruling that would allow ETE to walk away from the more than $20 billion deal.
Williams is appealing a ruling in Delaware Court of Chancery on Friday by Vice Chancellor Sam Glasscock, who said that Energy Transfer, or ETE, had not breached the merger agreement by raising tax issues that would prevent the deal from closing by the agreed upon termination date.
Under the terms of the deal, if the deal is not completed by Tuesday, ETE can walk away without penalty.
Williams said that more than 80 percent of the votes cast at its special shareholder meeting were in favor of the deal.
The two companies sued each other in Delaware in May after months of heated disagreement. ETE has been trying for months to back out of a deal that has become less attractive in the wake of oil price fluctuations and a fall in the company’s shares.
(Reporting by Michael Erman; Editing by Leslie Adler)