Williams to seek further alternatives following rejection of ETE’s $53bn takeover bid

US based energy firm Williams Companies is still seeking ‘strategic alternatives’ after rejecting a $53.1bn takeover offer from Energy Transfer Equity (ETE).

Without disclosing that the proposal came from ETE, the firm informed of receiving an unsolicited acquisition proposal at a stated per share price of $64.

Williams considers that the offer ‘significantly undervalues’ the company.

It said that the deal, "would not deliver value commensurate with what Williams expects to achieve on a standalone basis and through other growth initiatives, including the pending acquisition of WPZ."

The firm has retained Barclays and Lazard for assistance in its search for alternatives, which is likely to include a merger, a sale or pursuance of William’s existing operating and growth plan.

William’s gas pipeline and domestic midstream interests are chiefly owned through its subsidiary Williams Partners (WZP). The company holds 66% stake in the subsidiary and has agreed to purchase the rest of its shares for more than $13bn.

ETE confirmed about its merger proposal today, according to which it was willing to acquire Williams in an all-equity transaction, including debt and other liabilities, for $53.1bn.

The firm had forwarded multiple proposals in the last six months to engage Williams in ‘meaningful, friendly dialogue’, all of which had been ‘inexplicably ignored’.

Initial proposal for the acquisition was made in May, which was renewed last week.