Dallas-based Energy Transfer must ‘pay the piper’ $410 million for ending big pipeline merger

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Dallas-based oil pipeline giant Energy Transfer LP must pay $410 million for scuttling a $33 billion merger with rival Williams Cos. over a tax flaw in the...

The judge’s ruling marks the latest twist in what was nicknamed the energy industry’s “deal from hell.”

“Having called a dirge for the merger,” Energy Transfer “must pay the piper,” Glasscock said in his 95-page ruling in the more-than-five-year dispute over the deal. Following a trial, Energy Transfer convinced Glasscock in 2016 that it had grounds to pull out of the merger after advisers said the deal didn’t free investors from $1 billion in tax liabilities. The ruling prompted both companies to demand breakup fees, arguing it was the other side that maneuvered to sink the deal.

 

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