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Williams: Nimble And Independent Is Best

Summary

The Enbridge deal for Spectra Energy will no doubt pressure Williams to consider a deal.

The numbers support staying independent, while the energy infrastructure sector is still in growth mode.

Williams has underperformed over the last 5 years, suggesting plenty of upside as the company gets back to focusing on making the business strong.

The recent Enbridge (NYSE:ENB) deal to buy Spectra Energy (NYSE:SE) combined with an activist attacking the management of Williams Cos. (NYSE:WMB) to pursue another deal brings up the big question. Are companies really better off merging?

Energy Transfer Equity's (NYSE:ETE) attempted buyout of Williams was highly disruptive to the businesses. The management teams were distracted with working on the merger and not building the business.

The Enbridge buyout of Spectra in an all-stock deal promises to build the biggest North American infrastructure company with an enterprise value of $127 billion at the time of the deal. The deal doesn't appear to create some of the complexities of...


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