Settlement Reached In El Paso Shareholder Lawsuits Resulting From El Paso Acquisition
Kinder Morgan, Inc. (NYSE: KMI) today announced that its wholly owned
subsidiary, El Paso LLC, has reached an agreement to settle all claims
asserted against all defendants by the former shareholders of El Paso
Kinder Morgan, Inc. (NYSE: KMI) today announced that its wholly owned subsidiary, El Paso LLC, has reached an agreement to settle all claims asserted against all defendants by the former shareholders of El Paso Corporation arising from the acquisition of El Paso by Kinder Morgan, which closed May 24. These claims were filed in lawsuits in Delaware, Texas and New York. As previously disclosed in KMI’s second quarter 10-Q, the settlement amount is $110 million. The settlement is subject to, among other conditions, approval by the Delaware Chancery Court. While the acquisition of El Paso benefited both KMI and El Paso shareholders, the company believes that resolving these claims at this time, avoiding the expense and uncertainty of continued litigation, and putting this matter behind it are in the best interest of its shareholders. El Paso shareholders overwhelmingly approved the merger, with more than 95 percent of the shares that voted cast in favor of the transaction. KMI shareholders also approved the merger, with all shares that voted cast in favor of the transaction. The consideration received by El Paso shareholders was valued at $26.87 per share based on KMI’s closing price as of Oct. 14, 2011, representing a 47 percent premium to the 20-day average closing price of El Paso common shares and a 37 percent premium over the closing price of El Paso common shares on Oct. 14, 2011. Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $100 billion. It owns an interest in or operates approximately 75,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. Kinder Morgan, Inc. (NYSE: KMI) owns the general partner interest of Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. For more information please visit www.kindermorgan.com. This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize.Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.