Who is really the problem in this deal ... is it ETE or WMB? If you are an ETE shareholder, you dislike the WMB position and the WMB shareholders. Visa versa if you are a WMB shareholder. At the end of the day, who is wrong and who is right? Is that to be decided by a judge? The relationship between both sides is scorched earth at this point.
He is trying every avenue he can to make the deal go away ... in a way, it is hilarious, but since we are WMB shareholders, it is not funny. The latest counter suit entails saying WMB should pay for obstructing the deal and not helping to finance it. I wonder what today is going to bring??
But, does WMB really want to proceed with the deal? Or do they merely want some compensation for the apparent screwing the WMB shareholders have endured? If you go to the ETE MB, they are happy with what Warren is doing ... they are not really looking at this from a neutral viewpoint. They just want ETE stock to go up and they see WMB shareholders and mgt as keeping that from happening. Sure looks like a toxic mess, eh?
I am very sick of this nonsense! There does not seem to be any incentive to do the right thing. The goal for Warren is escape the deal and not be liable for anything. The goal for WMB is to continue to say they want to proceed with the deal and ETE actions are keeping that from happening. Who has more to lose with this scenario? As you said, why would they want to throw this to a judge to decide? Maybe this is all about who blinks first in a high speed head on crash?
These two managements are going to knock each other out ... would be nice if they did and we got some new people
Agree with you, harehau. With that in mind, WMB will maintain a certain price relationship to ETE, until the deal is done or ended. As I mentioned, I think we are in to a more typical arbitrage situation and the goal is to bring the spread down between ETE and WMB ... the WSJ had an article yesterday or the day before on this subject, with a graph.
Today, crude is at $50, which is far higher than most expected, at the start of 2016. My latest assessment is there is arbitrage taking place, which is what has brought ETE down this last week or two ... with WMB rising. This is more traditional action for buyer and acquired. Which leads one to think, the deal is going to happen. I must admit, I have ZERO idea how this is going to turn out. But, I know, I prefer to not be associated with KW and his arrangements. I think the WMB board feels the same and is playing hardball, because they can and they should. Whether we get to vote on something, we shall see
Yes, Harehau, in the long run, what one does, does get remembered. Note ETE is just up over 1% today and not much yesterday. I see this as a reversion back to more reasonable levels for WMB, after getting sold off and shorted hard, because of the drop in crude and convoluted mess caused by ETE
WMB has a better future than ETE, with new projects. Doesn't matter what ETE does, though I would prefer WMB stays independent and collects some reimbursement from ETE for their inappropriate deal setup. Media BS makes it look like WMB is in trouble ... not so!
I agree, it does appear WMB is on a roll now, all major biz news is covering the WMB actions as front page stories ... the heat is ratcheted up on K Warren and ETE. Short interest is high in ETE, but much lower and declining for WMB. It should be an interesting week. Only 4-5 weeks to mid-June
Meanwhile, WMB is still in the green, but off from it's high of the day. Fascinating, but hard to make sense. Really have not been able to make sense of WMB trading for quite some time!
Could be WMB is finally getting some of the lost premium back ... no matter how you slice it, WMB is too low of a price. You have seen WPZ ... up 47% since beginning of April
I do not follow the options, but I do follow the ppl who follow the big trades. Big volume for ETE puts in July. May just be a gamble, but interesting WMB is up today and ETE is not and the volume in ETE is nothing, at 2.75m