Corvex Management issues open letter about Williams Cos. board

TULSA — Corvex Management LP, the hedge fund run by activist investor and former Williams Cos. board member Keith Meister, has submitted the names of 10 employees who will seek election as the entire Williams board at the firm’s 2016 annual meeting.

Corvex, in an open letter to Williams shareholders, offered more details of the plan that Meister, who is one of six Williams directors who resigned following Energy Transfer Equity’s termination of the merger with Williams Cos., announced during an interview Monday.

According to Meister, the 10 employees essentially would be placeholders until Corvex can solicit the best candidates to put up for a shareholder vote.

“This is not about Corvex, and we are not seeking to have Corvex employees serve as the directors that will guide this Company in the years to come,” Meister writes in the letter.

“We expect to act as any other Williams stockholder and vote, buy and sell Williams stock as We expect to act as any other Williams stockholder and vote, buy and sell Williams stock as we deem appropriate. We simply want to empower all stockholders by implementing a process that gives stockholders the opportunity to make their own determination as to the most qualified ‘draft picks’ as Williams board members.” we deem appropriate. We simply want to empower all stockholders by implementing a process that gives stockholders the opportunity to make their own determination as to the most qualified ‘draft picks’ as Williams board members.”

Corvex, and by extension Meister, owns nearly 30.9 million shares of Williams, or 4.1 percent of the company’s outstanding stock.

Monday, Williams responded to Meister’s statements, calling the move “a distracting and costly proxy contest” while it moves forward with its plan to identify new nominees to its board of directors.

Wednesday, Williams Cos. reiterated its disappointment with Corvex’s move. The company confirmed that it received the hedge fund’s nominations and that the board intends to review them carefully.

“Without taking a position on the Corvex 14a-8 shareholder proposal and the Corvex nomination, Williams notes that, should Corvex identify individuals with appropriate expertise, experience and skills who are qualified to serve on the board, Williams will work constructively with Corvex and seriously consider such candidates for appointment to the Board,” the company’s statement reads.