logo
Plus   Neg
Share
Email

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 (SEMG) that PAA has withdrawn its October 2011 proposal to acquire 100% of the issued and outstanding shares of Class A and Class B common stock of SemGroup for $24.00 per share in cash.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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
In a move likely to further inflame global trade tensions, President Donald Trump has threatened to impose a 20 percent tariff on all cars imported to the U.S. from the European Union. Trump claimed he would impose the new tariffs unless the EU removes tariffs and trade barriers placed on the U.S. The Federal Reserve has determined that the largest U.S. banks are strongly capitalized and would be able to lend to banks as well as households during a severe global economic recession. This is the fourth straight year that all banks have met the Federal Reserve's standards. The first round of results of the supervisory stress tests were released by the central bank on Thursday. The "safety" driver behind the wheel of a self-driving Uber was streaming a television show on her smartphone up until about the time of a fatal crash in March, according to a report from the Tempe Police Department. Uber's self-driving Volvo SUV, which was traveling at under 44 miles per hour, had struck and killed a pedestrian in Arizona on March 18.
Follow RTT