Williams Makes $4.9B Bid for Southern Union

Williams Cos. (NYSE: WMB) on Thursday made an unsolicited competing offer of $4.9 billion for Southern Union Co.  (NYSE: SUG), already a takeover target by Energy Transfer Equity (NYSE: ETE).

Williams all-cash proposal values natural gas pipeline company Southern Union at $39 a share, an 18% increase over Energy Transfers offer of $33 made last week.

In a statement, Williams said it made its offer to Southern Unions board.

Southerns shares rose more than $5 in after-hours trading to $39.19 after the offer was announced. The company had no immediate response to the competing bid.

Williams said its offer will not require any financing. Barclays Capital (NYSE: BCS) and Citigroup (NYSE: C) are acting as financial advisors.

Williams' proposal is compelling for both Southern Union and Williams investors, Alan Armstrong, Williams CEO, said in the statement. Our proposal provides significantly greater value to all Southern Union shareholders than they would receive from Energy Transfer and a path to realize such premium value that is more transparent, more expedient and more certain.