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Kinder Morgan Energy Partners Message Board

  • sjohns544 sjohns544 Aug 25, 2014 12:36 PM Flag

    Remember when KMI was taken private in 2006?

    Richard Kinder “only” made about $500 million the first day it was announced that KMI was being taken private in 2006. (Of course, billions more were made by the time he finished taking it public again in 2011.) Now, on the current KMP acquisition, he is really making out like the bandit that he is. This time he made more than a billion the first day because he owns 232 million shares of KMI. Of course, he “only” has 326 thousand shares of KMP, so he is very happy to steal KMP’s present and future tax depreciation for the benefit of KMI. (That's what is going in this acquisition by KMI.)

    When KMI was taken private in 2006, the initial premium offered was only 18%. After the investor outrage and threatened lawsuits, it was eventually raised to about 27%. So, sometimes a little outrage helps. Of course, this time the leverage is much less since KMP holders are limited partners and are mostly retail investors. Nevertheless, all the dishonesty in the February 2014 KMP investor presentation (about retaining the KMP partnership structure for at least the next 3-5 years) could help in an SEC investigation.

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