Williams Announces 10% Workforce Reduction

[rte66man]

Williams Companies Announces 10 Percent Layoffs - News9.com - Oklahoma City, OK - News, Weather, Video and Sports |

There will be no voluntary reductions nor will there be any additional incentives for those being laid off. If the 10% carries forward here in OKC, there will be about 50-75 people unemployed.

[rte66man]

ETE filed an amended S-4 today that included the following statement:

"ETE and WMB have also been analyzing other steps to reduce general and administrative expenses. ETE has determined that it will be necessary to consolidate corporate offices and headquarters of ETE and WMB in Dallas, Texas in order to achieve the appropriate overall reduction in general and administrative costs for the combined company and headquarters and, as a result, the current presence of WMB in Tulsa, Oklahoma and Oklahoma City, Oklahoma will need to be significantly reduced, particularly with respect to the finance, accounting, engineering and construction, legal, human resources and information technology functions, or potentially eliminated."

The entire filing can be found here:
EnergyTransfer.com - Investor Relations - SEC Filings

[HangryHippo]

ETE filed an amended S-4 today that included the following statement:

"ETE and WMB have also been analyzing other steps to reduce general and administrative expenses. ETE has determined that it will be necessary to consolidate corporate offices and headquarters of ETE and WMB in Dallas, Texas in order to achieve the appropriate overall reduction in general and administrative costs for the combined company and headquarters and, as a result, the current presence of WMB in Tulsa, Oklahoma and Oklahoma City, Oklahoma will need to be significantly reduced, particularly with respect to the finance, accounting, engineering and construction, legal, human resources and information technology functions, or potentially eliminated."

The entire filing can be found here:
EnergyTransfer.com - Investor Relations - SEC Filings

More good news!

[AP]

Oh wow. That's huge.

[Prunesmoothie]

If you look at some recent articles this merger may not go through. New York Times went as far as saying ETE had internal talks about giving Williams $2 billion to back out

[Eric]

If you look at some recent articles this merger may not go through. New York Times went as far as saying ETE had internal talks about giving Williams $2 billion to back out

I was pretty sure I had read similar things also. So which is it? After digging a little more it seems to go like this... WIlliams is gung ho to make it happen. But never a word from Energy Transfer is printed. But it is implied that they want out. The Times indicates that ETE can't back out due to the way the deal was structured. Since Williams wants it done, how does it now get done?

This would be a pretty big blow to Tulsa if it were to occur. Tulsa by way of Cushing has quietly grown into the midstream capital of the country. And right now midstream is still hanging in there pretty well. Be sad to see a company like this get taken out because an acquirer was on shaky ground to start with.

In regards to vacant office space in that tower. I don't think it will be all that bad as long as BOK remains a tenant.

[mimino]

I was pretty sure I had read similar things also. So which is it? After digging a little more it seems to go like this... WIlliams is gung ho to make it happen. But never a word from Energy Transfer is printed. But it is implied that they want out. The Times indicates that ETE can't back out due to the way the deal was structured. Since Williams wants it done, how does it now get done?

This would be a pretty big blow to Tulsa if it were to occur. Tulsa by way of Cushing has quietly grown into the midstream capital of the country. And right now midstream is still hanging in there pretty well. Be sad to see a company like this get taken out because an acquirer was on shaky ground to start with.

In regards to vacant office space in that tower. I don't think it will be all that bad as long as BOK remains a tenant.

ETE is pretty gung-ho about this as well, at least their CEO Kelcy Warren is. They have just announced a private offering to help shore up some financing for the deal.
Energy Transfer completes private offering to help pay for Williams deal - Energy Transfer Equity, L.P. (NYSE:ETE) | Seeking Alpha

[Swake]

Williams has to be hung-ho, if they come out against it and the deal fails Williams owes ETE $1.5 billion. This now is all about who pays who to end the deal.

From the World:

If Williams stockholders fail to approve the merger proposal at their upcoming special meeting, then Williams may have to reimburse ETE up to $50 million for all out-of-pocket expenses incurred with the deal, according to the original merger agreement.
The agreement also includes a different breakup fee of $1.48 billion penalty that Williams would pay to ETE if the merger was terminated under certain circumstances. Those circumstances include:
• Williams terminating the agreement to accept a better offer.
• ETE terminating the agreement due to a reverse in the Williams Cos. board of directors recommendation of the merger to Williams stockholders.
• ETE terminating the agreement due to Williams violating its obligation not to solicit a different takeover proposal

Energy Transfer filing announces gutting of Williams' Tulsa, Oklahoma City offices in merger - Tulsa World: Energy

And according to people I know at Williams, the plan always was to gut the Tulsa and OKC offices, this isn't new, it's just ETE being honest finally.

[Eric]

Not surprised. I grew up around Ponca City and this is very familiar. Sunshine and roses until the ink is dry. Then they bring out the guillotine.

At least Tulsa is diversified enough to withstand this. The COP deal set back Ponca City for a decade at least.

[DowntownMan]

Williams Companies Announces 10 Percent Layoffs - News9.com - Oklahoma City, OK - News, Weather, Video and Sports |

There will be no voluntary reductions nor will there be any additional incentives for those being laid off. If the 10% carries forward here in OKC, there will be about 50-75 people unemployed.

The 10% layoff is occurring today,

[adaniel]

This is getting rather ugly. I would be surprised if the merger goes through at this point....

Williams Cos. sue ETE, Kelcy Warren over stock offering - Tulsa World: Energy

[OkiePoke]

I don't think either party wants this deal to go through. That doesn't mean that it won't, though.

[DowntownMan]

I don't think either party wants this deal to go through. That doesn't mean that it won't, though.

This merger is officially not happening.

[soonerfan_in_okc]

Woohoo. The 5th largest company in Oklahoma is staying in state.