The Williams Companies sued the chairman at Energy Transfer Equity LP, a proposed merger partner, in state court in Dallas saying he broke their agreement.
Williams is represented in the case by firm lawyers Rusty Hardin, Jeremy Monthy, Derek Hollingsworth, Lara Hudgins Hollingsworth and Jenny Brevorka along with lawyers at Cravath Swaine & Moore LLP.
The case was covered by Law360 in “Willams Says ETE Chair’s Offrering Broke Merger Past” (subscription required).
Law360 reported: “Saying his actions constitute tortious interference with the agreement governing what was at the time of its September announcement a $37.7 billion tie-up between two energy leaders, Williams claims ETE chairman Kelcy L. Warren orchestrated a March private offering that guarantees he and select ETE investors will be paid the same amounts they currently receive should declining energy prices force the company to slash its quarterly distribution after the deal goes through. Williams shareholders would be offered no such promise.”
The legal news agency reported that on behalf of itself and its shareholders, Williams seeks damages equivalent to reduced value of the ETC shares they would receive should the deal go through, any quarterly distributions unfairly denied them, as well as exemplary damages, but does not provide an estimate.
The case is The Williams Companies Inc. v. Kelcy L. Warren No. DC-16-03941 in the District Court of Dallas County, Texas.