From the S&P report dated Dec. 3, 2011 in which they reiterate their HOLD rating on EP:
"Our 12-month target price of $27 is based on terms of the KMI offer, which is comprised of $14.65 per share in cash, 0.4187 of a KMI share (recently valued at $12.56 per EP share) and 0.64 of a KMI five-year warrant ($40 exercise price; current value about $1). EP holders may instead elect to receive $25.91 in cash or 0.9635 of a KMI share, subject to proration, plus 0.64 of the KMI warrant."
You can put these numbers in a Google Docs spreadsheet and put in the real time prices for EP and KMI to calculate the value real time. Use =GoogleFinance("EP") in one cell and GoogleFinance("KMI") in another cell for the real time prices. Based on current prices deal is worth
$25.91 all cash $27.39 mixed election warrant=0 $28.35 mixed election warrant=$0.96 $29.31 all KMI stock, warrant=0 $30.27 all KMI stock, warrant=$0.96
EP stock made it down to $1 less than the all cash price yesterday for a 4% discount and probably 8% annualized return just to the all cash price.
Linkin Park :: IMO, you need to ignore the all cash price and the all stock price as you do your evaluation. Shareholders will only want all cash or all stock if those extremes turn out to be the best deal in which case EVERYONE will want the best deal. Because there is proration, you will end up back with the original deal ($14.65 + .4187 KMI + warrant).