Energy Transfer Partners to buy Sunoco for $5.3B
Source: AP-Excite
By CHRIS KAHN
NEW YORK (AP) - Energy Transfer Partners is buying Sunoco in a $5.3 billion deal that creates one of the more diverse pipeline companies in the country.
The acquisition includes nearly 8,000 miles of pipeline, as well as 4,900 gas stations in 24 Eastern states. Those stations will keep the iconic Sunoco brand name and its diamond-and-arrow logo. The deal also brings a refinery business that Sunoco is trying to get out of.
Energy Transfer is primarily a natural gas pipeline company. Sunoco's pipeline network will allow the Dallas company to expand into moving crude oil and refined petroleum products from the Great Lakes and Northeast to America's refining center along the Gulf Coast. Sunoco's pipelines have been in high demand recently thanks to a boom in drilling for gas and oil in U.S. shale rock formations.
The agreement works out to $50.13 per Sunoco share. Those shares surged $7.99, nearly 20 percent, to a four-year high of $48.90 in midday trading.
Read more: http://apnews.excite.com/article/20120430/D9UFE3U00.html