Crestwood Midstream Partners LP (CMLP) Stock Opened Higher, Then Dropped

NEW YORK (TheStreet) -- Shares of Crestwood Midstream Partners LP  (CMLP) opened higher on Wednesday but were down 2.31% to $15.23 in afternoon trading.

Crestwood Equity Partners LP (CEQP) announced Wednesday it would acquire Crestwood Midstream Partners, a master limited partnership, in a $3.5 billion stock deal to streamline its corporate structure. Crestwood Midstream unit holders will receive 2.75 Crestwood Equity units for each unit held, or $18.75 per unit.

The offer represents a 17% premium to Crestwood Midstream's Tuesday closing price of $15.59.

"Over the last year, Crestwood has evaluated a number of strategic alternatives to improve our competitive position in the marketplace and unlock the true value of our asset portfolio," said Robert G. Phillips, Chairman, President and CEO of Crestwood, in a statement.

"By combining our partnerships and simplifying our corporate structure, we are better able to execute on our strategic objectives of fundamental value creation through providing first-class customer service and by executing on organic expansion and acquisition opportunities around our portfolio of midstream assets," Phillips continued.

More than 4.8 million shares of Crestwood Midstream Partners had changed hands as of 2:24 p.m., compared to the daily average volume of 681,797.

CMLP Chart CMLP data by YCharts

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