As a MWE long, I agree. It cost us plenty to free ourselves from living under the thumb of a GP 7 years ago, and don't want to live that way again, with MPC taking the IDR gravy. Way too small a premium too accept, not that MPLX has tanked.
I given the shrinking premium (though some has been recovered today), other buyers may show up.
Correct cmally. And for every $1 that mplx goes down, mwe unitholders get boned for $1.09. And since mplx has now declined by over $10/share from Friday's close upon which the deal was predicated and continues to be lazily reported on, it's now a $68/share deal, not a $79/share deal. Not nearly good enough to put up with giving MPC the IDR's and accepted an huge slash in the distribution.
At this point, this is a #$%$ deal for MWE unitholders.
MPLX now at $59.60; current value of deal to MWE unitholders is now 1.09 X $59.6 = $64.96, plus the $3.37/unit cash = $68.33. Way way way less than the advertised $79+ per unit that is STILL beyond reported by the idiots in the investor media. The fact that MWE is trading so far below the announced purchase price is proof that Mr. Market agrees this deal is #$%$ for the owners of MWE.
Is it worth it to sacrifice IDR's and to have the distribution slashed? Methinks not.
I believe EPD would be a pretty good fit. ESPECIALLY since its also a holding of mine, and the IDR's could remain in my family. Extra especially if it's a richer deal for MWE unitholders than the excrable MPC/MPLX deal.
All well and good, buyandwin, but we don't know what commitments have been made to Semple and MWE management personally from MPLX/MPC. Their interests may not be identical to us MWE unitholders.
Nope, never have. Would Semple and the board have made the deal if the consideration were only $68, as it appears to be right now? Perhaps you could ask him. It's quite possible they did not anticipate how dramatically MPLX would tank on the news.
It just seems to me that a 14-15% premium is pretty skimpy to give up the IDR's and most of the distribution. Not to mention that it's well below what has been reported, based on the $79/share press release.
It's now down to $65.50/share for MWE. If MPLX gets down to $51.72/share, the premium goes to....ZERO!!!
Got to be some outs on that breakup fee: what if MPLX goes down to $1/share: are we supposed to accept $4.46/unit for MWE? At some point, it really can be cheaper to pay the breakup fee.
Worse than that. At the current price of $55.84 for MPLX, the $79/unit deal is now a $64/unit deal.
That $13 billion deal is now a $10.5 billion deal.
Shrinking premium, slashed distribution, and a new IDR bloodsucker. Such a deal for MWE unitholders.
The timing of this is pretty bad, too, for attracting other suitors, as all of the MLP players have seen their unit values erode. Much less viable for an EPD to sneak in and steal MWE.
It's possible, however, given what has transpired over the last few weeks, the buyer will have to come from somewhere outside of the MPL space.
Too much MLP capitalization has been destroyed.
In my own economic self interest, I should probably sell my position in MWE. However, I've decided to ride it out, if for no other reason than the satisfaction of voting NO on this sh*tty deal.
Handing over the IDR's we paid so dearly for a few years ago, as well as slashing the distribution by more than half, is way to steep for the paltry taxable premium we're to receive.
Bingo, contraindicator. The August distribution will occur.
And I wouldn't count out the November distribution, either. This deal is a LONG way from being done. MWE unitholders are, in the main, really PO'd about this deal.
Disagree. Not worth giving up the IDR's. It kills kills kills future price appreciation for all except MPC.
Denver presence? Who cares? I thought we were in this to make money.
In what was billed as a $78.64/unit purchase price, of which $3.37/unit was in cash, producing a premium of 32% over MWE's $59.75 closing price on the day of the announcement, the premium has now dwindled to 1.5%, or $60.68/unit, inclusive of the cash component.
As a MWE unitholder, this paltry premium is not worth giving up the IDR's that we paid so dearly for, not to mention slashing our distribution by more than half.
I urge MWE unitholders to join me in voting NO.
Have read your post 2x, still don't understand it.
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