Enterprise to buy Teppco

Teppco, which had seen its stock value tumble along with the price of oil and natural gas, rejected an earlier bid for $2.8 billion earlier this year.

Enterprise will bring together the oil and gas operations of Texas billionaire Dan Duncan.
For Enterprise, the deal brings an enormous transportation and storage network and will lead to $20 million in savings, the company said.

The acquisition “will establish Enterprise as the largest pipeline partnership as measured by miles of pipe, enterprise value and equity market capitalization,” said Michael A Creel, President & CEO of Enterprise.

Teppco shareholders will receive 1.24 Enterprise common shares for each Teppco share, a 14.5 per cent premium to the initial offer made by Enterprise March 9.

Teppco Partners LP and its general partner Texas Eastern Products Pipeline Co LLC, will become wholly owned subsidiaries of Enterprise. The new partnership will take the Enterprise name. The deal is expected to close by the end of the year.