So you think all investors are 100% rational? Some will want all cash even if KMI>$26 or so. Some will want all stock because they are long term investors. And some will default to the mixed election because nobody took the time to read the options they have.
And, do you know where KMI will be in six months? I don't, hence the complete analysis.
I'm sort of a bumpkin investor so I am using the lowest price as my bogey to get into EP and assuming the deal goes through. Those that paid $25.61 for EP right after the deal was announced were crazy. EP traded down to well below $1 off the all cash price of $25.91, which is where I bought. If I get more than the all cash price, OMG what will I do with the extra money?
The return to the all stock and warrant = $0.96 is so high it is telling me there is a lot of risk here. So, I am taking a little of this deal but loading up the truck.
But you won't know what the best deal is until closing, hence all options. And if KMI is near $26, there will some handwringing going on. I'm looking at the worst deal since all the other deals are nice upside. But to each his own.