NEW YORK (TheStreet) --Shares of Williams Companies (WMB) are rising by 26.24% to $61.01 at the start of trading on Monday morning after the energy infrastructure company announced that it is exploring its strategic alternatives.
Williams Companies announced on Sunday that it received an unsolicited offer of $64 per share from an unnamed company, later identified as Energy Transfer Equity (ETE) by Reuters.
TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS Charitable Trust Portfolio had this to say about the offer: "This deal would create a pipeline colossus. We own ETP for the trust and it would be a huge winner if this deal gets done because it could have pricing power that it does not have now."
The company said the $48 billion offer was contingent on the cancelation of Williams' pending acquisition of Williams Partners (WPZ). Williams turned down the offer as it believes it undervalues the company.
"The Williams Board carefully considered the unsolicited proposal and determined that it significantly undervalues Williams and would not deliver value commensurate with what Williams expects to achieve on a standalone basis and through other growth initiatives, including the pending acquisition of Williams Partners," the company said in a statement announcing the strategic review.
Separately, TheStreet Ratings team rates WILLIAMS COS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WILLIAMS COS INC (WMB) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."