DALLAS ( TheStreet) -- Energy Transfer Equity ( ETE) raised its offer to acquire Southern Union ( SUG) for about $5.1 billion in cash. Under the new deal, Southern Union shares are valued at $40 a share, higher than Energy Transfer's mid-June bid of $33 a share, and above a competing offer from Williams ( WMB) of $39 a share. Southern Union shareholders can elect to exchange their common shares for $40 of cash or 0.903 Energy Transfer common units. The maximum cash component is 60% of the total consideration and the common unit component can fluctuate between 40% and 50%, the companies said in a statement Tuesday. The total value of the deal, approved by the boards of both companies, is about $8.9 billion, including debt. "We have listened to SUG shareholders and are providing a superior yet simpler transaction, including a significant cash component and the opportunity to benefit from ETE's upside through the ownership of ETE common units," said Kelcy Warren, ETE's chairman and largest unitholder. "The revised ETE/Southern Union agreement delivers superior value, highly compelling equity participation and certainty to close for SUG shareholders." Southern Union shares closed Friday at $40.37. -- Written by Joseph Woelfel >To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: email@example.com.