Williams to Cut Dividend if Energy Transfer Deal Fails

Williams Cos Inc said on Wednesday that it would cut its dividend in the next quarter if a proposed deal to sell itself to larger U.S pipeline peer Energy Transfer Equity LP fell through.

 

Energy Transfer's proposed acquisition of Williams has been in doubt for months, with Williams alleging that Energy Transfer has been actively trying to break the deal. The two companies have sued each other.

 

Williams said on Wednesday it would pay a regular dividend of 64 cents per share for the current quarter on June 27 to shareholders on record as of June 20.

 

Williams, which has paid a dividend every quarter since 1974, said "the amount of any dividend reduction has not yet been determined, but could be material."

 

The company said it remained committed to holding a shareholder vote on June 27 on the proposed deal with Energy Transfer, and closing the transaction "as soon as possible."

 

According to the current terms, the agreement will expire if the transaction does not close by June 28.

 

Energy Transfer launched an unsolicited bid for Williams in June and reached a deal with the company in September that was then worth $33 billion.


(Reporting by Swetha Gopinath; Editing by Savio D'Souza)