Energy Transfer Partners to Acquire Sunoco for $5.4 Billion (ETP, SUN)

Natural gas pipeline operator Energy Transfer Partners LP (ETP) on Monday announced a deal to acquire oil refiner Sunoco Inc. (SUN) for $5.4 billion in cash and stock.

In pursuant to the deal, Sunoco shareholders will receive $25 in cash and 0.5245 ETP shares for each SUN share they currently own. In total, the $50.13 per-share offer represents a 22.5% premium to Sunoco’s Friday closing price of $40.91.

ETP said the deal allows it some exposure to the more-lucrative oil transportation business, as its natural gas transportation business lags amid low natural gas prices.

Energy Transfer Partners shares rose $1.31, or +2.7%, in premarket trading Monday, while Sunoco shares jumped $8.23, or +20%.

The Bottom Line
Shares of Energy Transfer Partners (ETP) have a 7.47% dividend yield, based on Friday’s closing stock price of $47.92. Shares of Sunoco (SUN) have a 1.96% dividend yield, based on Friday’s closing stock price of $40.91.

Both Energy Transfer Partners LP (ETP) and Sunoco Inc. (SUN) are rated “Neutral” by Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here