Enterprise Products Partners L.P. (EPD) agreed to reacquire
former subsidiary Duncan Energy Partners L.P. (DEP) in an all-unit
deal valued at about $2.5 billion.
In 2006, Enterprise Products Partners' parent company,
Enterprise Products Operating LP, spun off Duncan as a separate
entity holding interest in some of Enterprise's mid-stream
assets.
Enterprise now owns Duncan's general partner and about 58% of
its common units. In February, it offered to acquire the remainder
of the Duncan units. Friday's deal represents a roughly 35% premium
to Duncan's closing price on Feb. 22, the last day before
Enterprise launched its takeover offer.
The merger is expected to close in the third quarter.
Duncan and Enterprise earlier this month boosted their quarterly
cash distributions by 2.2% and 5.3%, respectively.
Duncan units closed at $40.74 Thursday and were inactive
premarket. The units have gained 52% over the past 12 months.
Enterprise, also inactive premarket, closed at $43.39 and has
gained 22% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com