logo
Share SHARE
FONT-SIZE Plus   Neg

Plains All American Withdraws Acquisitions Proposal For SemGroup - Quick Facts

Plains All American Pipeline L.P. (PAA) announced that it has communicated to the management and Board of SemGroup Corp. (SEMG) that PAA has withdrawn its October 2011 proposal to acquire 100% of the issued and outstanding shares of Class A and Class B common stock of SemGroup for $24.00 per share in cash.

A Partnership spokesperson stated that the company did not intend to provide further comment.

In November 2011, Plains All American Pipeline had said it reiterated its offer to acquire SemGroup for $24 per share.

In early October 2011, PAA made a $24 per share cash offer to buy SemGroup. The offer has a total enterprise value of over $1.24 billion. However, the offer was rejected by SemGroup as opportunistic and failing to adequately reflect "SemGroup's bright prospects for stockholder value creation." SemGroup said a few days later that its board adopted a limited duration stockholder rights plan to prevent investors from amassing large stake in the company without its consent.

PAA, which had approached SemGroup in March 2010 with a $17 per share offer, said at that time it was making its letter public to inform SemGroup's stockholders and stakeholders. According to the company, SemGroup's assets and businesses have not been performing with the projections in its plan of reorganization after it emerged from bankruptcy in November 2009.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Low-cost airline Allegiant Air announced its order for brand-new aircraft for the first time in its history. The carrier announced on Friday it had reached a deal to purchase 12 current-generation models of Airbus' A320 narrow-body jets. The company termed the deal as "another step towards Allegiant's... Los Angeles City officials have filed criminal charges against Soylent CEO Robert Rhinehart for placing a bright red shipping container on Montecito Heights hillside as part of his "experiment in sustainable living." City Attorney Mike Feuer Friday announced that his office has filed multiple criminal... A new study says that if Hillary Clinton is elected then her proposals will strengthen the U.S. economy and create millions of jobs. According to Moody's Analytics, Hillary Clinton's economic proposal would oversee a "somewhat stronger U.S. economy." The conclusion was reached after assessing her...
comments powered by Disqus
Follow RTT