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Kinder Morgan Energy Partners Message Board

dse4278 1 post  |  Last Activity: Sep 16, 2015 8:09 PM Member since: Apr 26, 2006
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  • dse4278 dse4278 Sep 16, 2015 8:09 PM Flag

    Using basic math, if the deal closes out at 100B (which is likely) and MO owns 27%, with roughly 2B shares outstanding, it would created a cash distribution of roughly $13.50 / share. Given the premium ABI would be paying, I think MO is better off on the cash distribution side of the deal given subsequent deals would struggle to generate the same premium thus citing a peak to the market within the segment. Altria is clearly at the table on this and I am sure are working through the tax models to ensure maximum distribution to ensure their shares are voted properly.