Kinder Morgan announces 63M stock offering

Goldman Sachs, 2 other investors, selling off part of their stakes on Kinder Morgan

Associated Press

HOUSTON (AP) -- Kinder Morgan said Wednesday that three of its investors are selling part of their stakes in the natural gas pipeline operator as part of a secondary offering of 63 million shares of its stock.

The investors include Goldman, Sachs & Co., which is selling 36.7 million, or about 27 percent, of its 134.8 million shares, Kinder Morgan said in a filing with the Securities and Exchange Commission.

In addition, The Carlyle Group and Riverstone Holdings LLC, which both hold 51.2 million shares of the company's stock, are selling 12.7 million shares and 13.6 million shares, respectively.

Neither Kinder Morgan nor its management team is selling any shares in the offering and the Houston company will not receive any of the offering's proceeds.

The offering comes after last month's closing of Kinder Morgan Inc.'s $20 billion acquisition of El Paso Corp., which made it the biggest U.S. natural gas pipeline operator.

A judge nearly killed the deal earlier this year, because Goldman collected a fee for advising one company, but failed to disclose that one of its bankers owned about $340,000 worth of stock in Kinder Morgan.

Goldman had disclosed that its private-equity arm had stake in Kinder Morgan, and the fact that it controlled two seats on Kinder Morgan's board.

Barclays Capital is the underwriter and the offering is expected to close Monday.

Kinder Morgan shares fell 95 cents, or 2.9 percent, to $32.07 in afternoon trading. They have traded in a range of $23.51 to $40.25 in the past year.

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