TEPPCO Partners, L.P.’s Special Committee Responds to Enterprise’s Proposal
29 April 2009 - 10:10PM
Business Wire
TEPPCO Partners, L.P. (NYSE:TPP) (�TEPPCO�) today announced that
on March 9, 2009, it received an offer from Enterprise Products
Partners L.P. (NYSE:EPD) (�Enterprise�) to acquire all of the
outstanding partnership interests of TEPPCO for 1.043 Enterprise
common units plus $1.00 in cash for each TEPPCO common unit. In
order to evaluate the proposed acquisition by Enterprise, the
Audit, Conflicts and Governance Committee of TEPPCO�s general
partner, Texas Eastern Products Pipeline Company, LLC, has formed a
special committee of independent directors consisting of Donald H.
Daigle, Irvin Toole, Jr. and Duke R. Ligon. After considering
Enterprise�s offer with the assistance of its financial and legal
advisors, the special committee has unanimously concluded that it
does not support the proposal as it now stands and has advised
Enterprise of its decision. However, the special committee remains
willing to consider a revised proposal that appropriately
recognizes the value of TEPPCO, including the significant benefits
that would accrue to Enterprise as a result of a merger with
TEPPCO.
Mr. Donald H. Daigle, chairman of the special committee, said,
�The special committee is confident in TEPPCO�s strong financial
performance and its diverse and valuable asset mix, which should
continue to enhance unitholder value. In addition, we look forward
to TEPPCO maintaining its successful relationship with Enterprise,
regardless of ownership structure.�
TEPPCO does not intend to comment further on discussions unless
and until a definitive agreement is reached.
TEPPCO Partners, L.P., is a publicly traded energy logistics
partnership with operations that span much of the continental
United States. TEPPCO owns and operates an extensive network of
assets that facilitate the movement, marketing, gathering and
storage of various commodities and energy-related products. The
partnership�s midstream network is comprised of approximately
12,500 miles of pipelines that gather and transport refined
petroleum products, crude oil, natural gas, liquefied petroleum
gases (LPGs) and natural gas liquids, including one of the largest
common carrier pipelines for refined petroleum products and LPGs in
the United States. TEPPCO�s storage assets include approximately 27
million barrels of capacity for refined petroleum products and LPGs
and about 14 million barrels of capacity for crude oil. TEPPCO also
owns a marine business that operates primarily on the United States
inland and Intracoastal Waterway systems, and in the Gulf of
Mexico. For more information, visit TEPPCO�s website
(www.teppco.com). Texas Eastern Products Pipeline Company, LLC, the
general partner of TEPPCO Partners, L.P., is owned by Enterprise GP
Holdings (NYSE:EPE).
This news release includes forward-looking statements. Except
for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that
involve certain risks and uncertainties. These risks and
uncertainties include, among other things, insufficient cash from
operations, market conditions, governmental regulations and factors
discussed in TEPPCO Partners, L.P.'s filings with the Securities
and Exchange Commission. If any of these risks or uncertainties
materializes, or should underlying assumptions prove incorrect,
actual results or outcomes may vary materially from those expected.
The partnership disclaims any intention or obligation to update
publicly or reverse such statements, whether as a result of new
information, future events or otherwise.
Teppco Partners (NYSE:TPP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Teppco Partners (NYSE:TPP)
Historical Stock Chart
From Jul 2023 to Jul 2024