Williams trumps Energy Transfer bid for Southern Union, (NYSE: WMB), (NYSE: SUG), (NYSE: ETE)

Williams Cos Inc (WMB.N) on Thursday raised its offer to purchase pipeline operator Southern Union (SUG.N) by nearly 13 percent to $5.5 billion, trumping a rival bid by Energy Transfer Equity LP (ETE.N). Energy Transfer struck a sweetened $5 billion deal last week to buy Southern for $40 a share. But shares of Southern moved above the agreed-upon price, suggesting investors expected Williams to leapfrog its rival. Williams has raised its offer by $5 to $44 per share in cash, saying it now expects more synergies from a merger and that the bid is not subject to any financing conditions. "Williams is prepared to move quickly to consummate this transaction," Chief Executive Officer Alan Armstrong wrote in a letter to Southern Union executives and board members. "We believe that we can finalize terms of a potential transaction with Southern Union by Tuesday, July 19."

The Williams Companies, Inc. (Williams) is an integrated natural gas company focused on exploration and production, midstream gathering and processing, and interstate natural gas transportation primarily in the Rocky Mountains, Gulf Coast, Pacific Northwest, Eastern Seaboard and the Marcellus Shale in Pennsylvania. Shares of WMB remained unchanged at $28.79. In the past year, the shares have traded as low as $17.72 and as high as $33.47. On average, 7246630 shares of WMB exchange hands on a given day and today's volume is recorded at 4100.

Southern Union Company (Southern Union) is engaged in the gathering, processing, transportation, storage and distribution of natural gas in the United States. Shares of SUG remained unchanged at $41.60. In the past year, the shares have traded as low as $22.02 and as high as $42.53. On average, 2829660 shares of SUG exchange hands on a given day and today's volume is recorded at 6748920.

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