Kinder Morgan Consolidation Yielding Short-Term Bonanza For Investors
Energy pipeline giant Kinder Morgan said Sunday evening it will pay 2.1931 KMI shares and $10.77 in cash for each unit of its Kinder Morgan Energy Partners LP (NYSE: KMP) affiliate, or a 12 percent premium over Friday's closing price. KMP changed hands recently up 16 percent to $93.82.
Kinder Morgan Management, LLC (NYSE: KMR) shareholders would receive the 2.4849 KMI shares for each share in the consolidation deal, a 16.5 percent premium from Friday's price. KMR shares gained 23 percent recently to $194.72.
El Paso Pipeline Partners L.P. (NYSE: EPB) holders are set to receive 0.9451 KMI shares and $4.65 in cash for each EPB unit, a 15.4 percent premium over Friday. EPB shares jumped 20 percent to $40.44.
At the same time at least two purported class action suits were announced, claiming the companies failed to engage in a "full and fair auction, thus breaching fiduciary responsibilities to investors."
Kinder Morgan traded recently at $39.08, up 8.1 percent from Friday's close.
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