Analyst: Williams Companies Inc Strategic Review Is Key

Williams Companies Inc

jumped 25 percent in premarket trading Monday after the energy infrastructure company rejected a $64-a-share bid and said reviewing strategic alternatives. http://investor.williams.com/press-release/williams/williams-explore-strategic-alternatives Jeffries' Christopher Sighinolfi said disclosing the bid was a "defensive move" by Williams and said he's waiting to learn of Williams' timetable for completing its strategic review. Williams didn't disclose the source of the bid, but Energy Transfer Equity LP

later confirmed that it had made the $53.1 billion offer. http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-newsArticle&ID=2061168 ETE said its bid is contingent on Williams terminating its pending offer for Williams Partners LP

. Williams Partners LP

shares declined 7 percent to $49.52. Williams Cos. called the ETE bid "significantly undervalued" relative to what Williams expects to achieve on a standalone basis and through growth initiatives, including its acquisition of Williams Partners. ETE's Chairman Kelcy L. Warren said his company got "forced into a position to publicly confirm" its offer because Williams had "inexplicably ignored" efforts to hold merger talks. "Now that Williams has finally responded, ETE intends to engage with Williams to the extent that Williams undertakes a fair and even-handed process," Warren said. ETE, with a market capitalization of $36.73 billion, has orchestrated many transactions within the midstream sector, but an acquisition of Williams would mark the largest deal in its history, according to Sighinolfi.