MarkWest Shareholders Approve Marathon Buyout Offer
01 Diciembre 2015 - 2:10PM
Noticias Dow Jones
Energy companies MarkWest Energy Partners LP and Marathon
Petroleum Corp. said Tuesday that their merger deal, which faced
opposition from a MarkWest founder, had been approved by that
company's shareholders.
The deal was expected to be completed by Dec. 4.
The agreement will make MarkWest, the second-largest natural gas
processor in the U.S., a subsidiary of MPLX, Marathon's pipeline
operator, and creates among the biggest master limited
partnerships.
Last month, Marathon submitted what it called its " best and
final offer," increasing the cash portion of the deal to compensate
for a falling MPLX share price. The new offer was for $6.20 per
unit of cash for MarkWest shareholders, plus 1.09 MPLX units for
each MarkWest unit.
Shares of MPLX were down nearly 15% in afternoon trading
Tuesday.
Earlier last month, a former CEO of MarkWest, John Fox, among
the founders of the company in 1988, sought to scuttle the
marriage, saying shareholders would be better served with a
stand-alone company.
Mr. Fox delivered a letter outlining his concerns to MarkWest's
board and Chief Executive Frank Semple, and said he planned to
mount a campaign to sway other shareholders. Marathon beefed up its
offer following Mr. Fox's complaints.
Analysts said, however, that the same forces that have pummeled
shares of Marathon's partnership—the extended swoon of oil
prices—also made it harder for MarkWest to remain alone or find a
better buyer.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
December 01, 2015 14:55 ET (19:55 GMT)
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