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 (SEMG: Quote) that PAA has withdrawn its October 2011 proposal to acquire 100% of the issued and outstanding shares of Class A and Class B common stock of SemGroup for $24.00 per share in cash.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