Energy Transfer Partners, L.P. (NYSE:ETP) and Sunoco, Inc. (NYSE:SUN) today announced the preliminary results of the elections made by Sunoco shareholders regarding the form of merger consideration to be received in connection with ETP’s pending acquisition of Sunoco, which is currently expected to be completed on October 5, 2012.
As previously announced, under the terms of the merger agreement, Sunoco shareholders were able to receive, for each Sunoco common share they owned, a combination of $25.00 in cash and 0.5245 of an ETP common unit (the “Standard Mix of Consideration”). In lieu of receiving the Standard Mix of Consideration, Sunoco shareholders, for each Sunoco common share they owned, could make an election to receive $50.00 in cash (the “Cash Consideration”) or 1.0490 ETP common units (the “Unit Consideration”), with such Cash Consideration and Unit Consideration subject to proration in accordance with the merger agreement.
Based on available information as of the election deadline of 5:00 p.m., New York time, on October 1, 2012, the preliminary election results were as follows:
- holders of approximately 2,733,842 Sunoco shares, or approximately 2.61% of the outstanding Sunoco shares, elected to receive the Standard Mix of Consideration (which includes 538,007 shares of common stock subject to guaranteed delivery procedures);
- holders of approximately 77,474,401 Sunoco shares, or approximately 73.92% of the outstanding Sunoco shares, elected to receive the Cash Consideration (which includes approximately 16,851,529 shares of common stock subject to guaranteed delivery procedures);
- holders of approximately 4,451,739 Sunoco shares, or approximately 4.25% of the outstanding Sunoco shares, elected to receive the Unit Consideration (which includes approximately 17,866 shares of common stock subject to guaranteed delivery procedures); and
- holders of approximately 20,147,879 Sunoco shares, or approximately 19.22% of the outstanding Sunoco shares, did not make a valid election or did not deliver a valid election form prior to the election deadline and, therefore are deemed to have elected the Standard Mix of Consideration.
Because the Cash Consideration is oversubscribed, holders of Sunoco shares electing to receive the Cash Consideration will receive a combination of cash and ETP common units as set forth in the merger agreement.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV