Williams Cos. sues Energy Transfer Equity, its founder over stock offering

Williams Cos. Inc. has filed suit against Energy Transfer Equity and its founder in response to a private stock offering disclosed March 9.

The lawsuit against Energy Transfer Equity in a Delaware court seeks to unwind the private offering, according to a news release from Williams.

The litigation against Energy Transfer Equity’s founder and Dallas billionaire Kelcy Warren in a Texas court is for wrongful interference with the merger agreement executed on Sept. 28, 2015, as a result of the private offering of Series A Convertible Preferred Units. board of directors said it

Under the plan disclosed has not changed its recommendation in a regulatory filing, in favor of the unitholders agreed merger agreement the Tulsato forgo a portion of theirbased pipeline company future potential cash distributions made with Energy on common Transfer Equity on Sept. units for a period of up to 28. Pending Williams’ nine fiscal quarters. shareholder approval as

Only accredited investors well as some other closing were able to participate conditions, the merger is in the plan. According expected to be completed to the announcement in by the end of June. March, Energy Transfer However, following a Equity initially intended to review of Energy Transfer provide all of its common Equity’s private offering, unitholders the opportunity Williams concluded that to participate in the the deal is a breach of the offering. However, Williams merger agreement and Cos. wouldn’t allow filed litigation to protect its accounting firm to consent the interests of Williams to a public offering, shareholders, according to the filing said. the statement.

In a statement Wednesday, Amongthe Williamsother things, Cos. the statement reads, the offering provides select Energy Transfer Equity investors with preferential treatment on distribution. The litigation is intended to ensure that Williams’ stockholders will receive the consideration to which they are entitled under the merger agreement.

“The Williams Board is unanimously committed to enforcing its rights under the merger agreement entered into with ETE on September 28, 2015, and to delivering the benefits of the merger agreement to Williams’ stockholders,” the statement reads. “ETE has no basis to avoid its obligations under the merger agreement.”