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El Paso Corp. Message Board

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  • lincolnparker60614 lincolnparker60614 May 3, 2012 3:46 PM Flag

    EP/Kimber Mini-Tender?

    <<The above-listed stock is part of a non-mandatory reorganization or tender offer, which currently expires on 05/23/2012.>>

    This is the Kinder Morgan, Inc. (GP of Kinder Morgan) takeover of EP. Please note "tender offer."

    The following is boiler plate and educational in nature:
    <<"For mini-tender offers, the US Securities and Exchange Commission has urged caution. To review an SEC educational piece entitled "Mini-Tender Offers: Tips for Investors," please go to http://www.sec.gov/investor/pubs/miniten...>>


    Do call your broker, ask for all stock. The current all stock deal is worth $34+. Do argue that the fee seems excessive to such a good customer of long duration.

    <<If you decide to participate in this offer, you will need to inform your local Scottrade branch office no later than 10 a.m. ET on the expiration date listed above, and a $25 fee will be charged to your account. These shares must then remain in your account until the reorg/tender takes place. Please note that the expiration date for such actions is often extended and terms of the offer are subject to change. >>


    The current mixed election is worth $31.04 -- this is what almost everyone will get since there is a limited amount of stock.

    The current cash plus warrant deal is worth $27.36.

    With EP @ $29.80 and the mixed election worth $31.04 you will get $1.24 of extra value by getting the mixed election at current market prices, 4% discount. 4% is not enough for me to buy more EP, but it is too much for me to sell EP. whole deal goes down in value if KMI stock takes a hit.

 

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