Southern Union To Be Bought for $7.9B

DALLAS ( TheStreet) -- Energy Transfer Equity ( ETE) agreed to buy Southern Union ( SUG) for $7.9 billion, including about $3.7 billion of Southern Union debt.

The acquisition will create "the premier group of integrated midstream companies in the United States natural gas industry," the companies said in a press release.

Southern Union shareholders will exchange their common shares for newly issued Series B Units of ETE with a value of $33 a share, or about $4.2 billion.

The price is a 17% premium over Southern Union's $28.26 closing price on Wednesday.

Energy Transfer said the acquisition would complement its two master limited partnership units Energy Transfer Partners ( ETP) and Regency Energy Partners ( RGNC).

-- Written by Joseph Woelfel

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