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Enbridge Income Fund Holdings Inc. Message Board

  • blackoutbuzz blackoutbuzz Aug 11, 2014 12:43 PM Flag

    ENB strategy in light of KMI mega-merger

    I wonder if ENB would benefit from a similar move with ENF.TO. Maybe the path to riches for ENF.TO shareholders is a buyout by the parent and not drop-downs...

    @@@@@Houston billionaire Richard Kinder is consolidating his pipeline empire to strengthen it for growth as the U.S. shale drilling boom opens up $1.5 trillion in potential purchases and expansion projects. Kinder Morgan Inc. plans to acquire all of Kinder Morgan Energy Partners LP (KMP) , Kinder Morgan Management LLC (KMR) and El Paso Pipeline Partners LP (EPB) in a series of transactions valued at about $44 billion, according to a statement yesterday. The move by Kinder, who controls the entities through his 24 percent stake in the parent company, runs counter to the industry trend of spinning off pipelines and oil terminals into tax-advantaged partnerships that funnel cash to investors. By simplifying his empire's corporate structure, Kinder will lower borrowing costs and unify the company under a single stock that he can use as currency to buy competitors.The consolidation will make it easier and more profitable for Kinder "to pursue expansion and acquisitions in a target-rich environment," the company said in a slide presentation published on its website yesterday.

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    • Well that was a quick response by the firm with regard to this possibility. So the answer is NO.

      @@@@CALGARY, Alberta, Aug 11 (Reuters) - Enbridge Inc, Canada's largest pipeline company, said on Monday it has no plans to imitate rival Kinder Morgan Inc's $44 billion plan to consolidate its publicly traded units into a single company. Enbridge, whose separately traded affiliates include Enbridge Energy Partners and Enbridge Income Fund Holdings Inc, said it has no interest in returning those companies into the corporate fold and cannot see a competitive advantage coming from such a move. "Enbridge already has a highly competitive cost of capital, and is well positioned to deliver double-digit dividend per share and earnings per share growth through 2017," Graham White, a spokesman for the company, said in an email.

 
ENF.TO
32.08+0.15(+0.47%)Aug 26 4:00 PMEDT