The Zacks Analyst Blog Highlights: Williams Companies, Southern Union Company, Energy Transfer Equity L.P., Barclays Capital and Citigroup

CHICAGO, June 27, 2011 /PRNewswire/ -- announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Williams Companies (NYSE: WMB), Southern Union Company (NYSE: SUG), Energy Transfer Equity L.P. (NYSE: ETE), Barclays Capital (NYSE: BCS) and Citigroup (NYSE: C).


Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Friday's Analyst Blog:

Williams Bids for Southern Union

Williams Companies (NYSE: WMB) has offered to acquire all of the outstanding shares of Southern Union Company (NYSE: SUG) for a total cash value of $4.86 billion, topping the bid of $4.2 billion that was placed by Energy Transfer Equity L.P. (NYSE: ETE). The total enterprise value of the deal is estimated at $8.7 billion, which includes a debt assumption of $3.7 billion.

In its bid, Williams proposed to pay $39 per share to Southern Union Company. This represents a premium of 18% over Energy Transfer's purchase price of $33 per share.

Barclays Capital (NYSE: BCS) and Citigroup (NYSE: C) –– acting as financial consultants for Williams –– showed immense confidence in the transaction and commented that the company is financially stable to make this all cash acquisition.

Williams plans to utilize Southern Union's network of pipelines to connect customers in Florida to new sources of natural gas in the Permian Basin and Granite Wash field in Texas and Oklahoma. The alliance is expected to form a major pipeline operator with nearly 30,000 miles of regulated pipelines.

With this deal, Williams also expects to realize cost savings of more than $50 million per year that will likely boost the company's cash flows, supporting its policy of high-dividend payout.

Williams management believes that its tender is more transparent and lucrative for Southern Union stakeholders than that of Energy Transfer's that was submitted last week. Williams' spokesperson commented that the company looking forward to closing this deal as soon as possible.

With the successful completion of the acquisition, Williams intends to blend the strategically positioned asset base of both companies. This will strengthen Williams' foothold in the North American region and provide it with access to the rich shale basins and end-use markets.

Moreover, Williams stated that this proposal will not affect its plans to split its exploration and production business into an independent trading company. The spin-off is slated to take place in the third quarter of 2011.

Williams is an integrated energy firm that primarily finds, produces, gathers, processes and transports natural gas in the Rocky Mountains, Gulf Coast, Pacific Northwest, Eastern Seaboard and the Marcellus Shale in Pennsylvania.

We are maintaining our long-term Neutral rating on Williams.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

SOURCE Zacks Investment Research, Inc.

Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.