Energy Transfer Equity (ETE) Stock Falling After Williams Cos Rejects Purchase Offer

NEW YORK (TheStreet) -- Shares of Energy Transfer Equity (ETE) are down by 3.61% to $65.92 on heavy volume in late afternoon trading on Monday, after the energy services limited partnership's offer to acquire Williams Companies (WMB) was rejected.

The acquisition would have been an all-equity transaction valued at $53.1 billion, including the assumption of debt and other liabilities.

So far today, 8.13 million shares of Energy Transfer Equity have exchanged hands as compared to its average daily volume of 1.21 million shares.

"ETE believes that a merger with Williams and adding Williams Partners (WPZ) to its family of partnerships would create significantly more value to the Williams stockholders than the proposed merger of Williams and WPZ," the company said in a statement.

Earlier today, Williams Companies released a statement saying it found Energy Transfer Equity's unsolicited offer undervalued the business.

TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS Charitable Trust Portfolio had this to say about the Energy Transfer Equity 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."

Separately, TheStreet Ratings team rates ENERGY TRANSFER EQUITY LP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

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