NEW YORK (TheStreet) -- Shares of Energy Transfer Equity (ETE) are up 4.79% to $15.10 in pre-market trading on Wednesday after terminating its planned acquisition of rival pipeline company Williams Cos. (WMB).
Energy Transfer said it provided written notice ending the agreement after a Delaware judge ruled on Friday that it could do so since its lawyers were unable to deliver a tax opinion needed for the deal to close.
Williams Cos. on Monday said it has filed papers commencing an appeal in the Delaware Supreme Court after its shareholders voted to approve the transaction.
Energy Transfer agreed in September to purchase Williams Cos. in a deal valued at nearly $33 billion at the time. The value of the transaction has since deteriorated as oil prices have declined, causing Energy Transfer to have second thoughts about the $6 billion cash component of the agreement in particular.
Williams Cos. stock is flat in pre-market trading after closing at $20.64 on Tuesday.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Energy Transfer's strengths such as its increase in net income, good cash flow from operations and impressive record of earnings per share growth are countered by weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: ETE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.