they may go into LNCO as well, some of the KMP holders may have learned the ramifications of an mlp the hard way. ie MLPS are not guaranteed income annuities. actually even thats not safe cause annuities can also fail with bankruptcy can't they ?
KMI was/is a C corp, so your analysis is based upon inaccurate facts.
However, your idea is a sound one as applied to KMP. Indeed, KMP was/is the Alerian MLP Index's No. 1 holding at 10.7% and the four largest Alerian licensees held $2.2 Billion worth of KMP as of 8-15-14. Once KMP ceases to be an MLP, those funds will have to be re-invested by index funds elsewhere.
The other thing is that LINE was, at one point, booted out of one of the Alerian indexes because the share price was too low. That's no longer the case. Thus, there's a likelihood LINE will be re-added at some point.
I'm sure band meant after the deal closes. I think there's something to this thesis, that KMP money will migrate, but I'm not so sure it will end up here, or in any of the upstreams to any extent. There are several KMP-like pipeline companies to pick up that money. Sure, KMP had a material upstream component, but I'm not sure the market really understood that.
My own personal belief is that the upstreams may see something out of this deal, that is those very same upstream assets, for sale. I don't seem them fitting in with a C corporation pipeline company, and I think Kinder may want that capital to further pursue his empire building. KMI gets them at near market value for taxes, so the tax considerations of selling would be minor. Something we might see in early 2015.
and why would people leave kmi just because someone wrote some opinion about something doesn't make it reality I for one take most of what bloggers or pundants say as less than IF pundants knew reality ahead of time they would be just like buffet in fact they don't know
diversification as the KMP limited partners are bein forced into a taxable event. Anybody worth their beans will take the opprtunity for forward investment decisions, including moving some of the monies into other MLP vehicles.