A reverse split would have no effect on the distribution if they did a 1 for 2 reverse split the distribution would double per unit effectively remaining the same for current holders. More likely they would just cut the distribution and leave the share count as is if this was something they had to pursue, which may be the case at some point, but I don't see this happening for another few quarters at earliest.
I would be with you if this was a 100% cash deal and you got taken out for a low valuation, but you are getting units here. I believe that WMB and ETE together provide a combined entity that is stronger than either entity alone in which case that puts you in a better position than you are in today.
Energy Transfer Said Close to Winning Deal for Williams
After a nine-month battle that turned public this summer, Energy Transfer Equity LP is close to winning its takeover fight for rival pipeline operator Williams Cos., people with knowledge of the matter said.
The companies are in advanced talks about a deal that could be announced in the next week and a half, said the people, who asked not to be identified because the matter is private. The transaction hasn’t been finalized and talks could still fall through, the people said.
A deal between Energy Transfer and Williams would create the world’s largest operator of infrastructure for moving and processing oil and gas. It would also end a battle that went public in June, when Williams publicly rejected Energy Transfer’s unsolicited bid and hired banks to explore a sale.
Williams rose 3.3 percent to $45.02 at 3:33 p.m. in New York, after touching $46.44, the biggest intraday increase since the offer was disclosed. Energy Transfer rose about 1 percent to $25.56.
Energy Transfer offered to buy Williams for $64 a share in stock, or about $48 billion. Including debt, the deal would have been valued at about $53 billion, according to an announcement at the time. It’s not clear if Energy Transfer has changed the terms of its initial proposal.
Representatives for Williams and Energy Transfer declined to comment.