Kinder Morgan Consolidation Yielding Short-Term Bonanza For Investors

The three acquisition targets of Kinder Morgan Inc.'s

$71 billion consolidation plan moved sharply higher Monday while Kinder Morgan itself gained 17 percent in pre-market activity. http://www.benzinga.com/pressreleases/14/08/b4769490/kinder-morgan-inc-to-purchase-kmp-kmr-and-epb-2015-kmi-dividend-to-incr 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

affiliate, or a 12 percent premium over Friday's closing price. KMP changed hands recently up 26 percent to $101.67 Kinder Morgan Management, LLC

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 33.6 percent recently to $102.93 a share. El Paso Pipeline Partners L.P.

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 30 percent to $43.65 a share. 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 responsiblities to investors.http://www.benzinga.com/pressreleases/14/08/b4769490/kinder-morgan-inc-to-purchase-kmp-kmr-and-epb-2015-kmi-dividend-to-incr Kinder Morgan Inc. shares gained $6.57 a share to $42.69.