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Proxy advisory firms support Energy Transfer simplification merger

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Proxy advisory firms support Energy Transfer simplification merger

Two major proxy advisory firms endorsed the $26.55 billion merger deal between Energy Transfer Equity LP and Energy Transfer Partners LP, two of the largest pipeline master limited partnerships in the U.S.

Institutional Shareholder Services and Glass Lewis & Co. recommended that ETP unit holders vote in favor of the planned merger, according to an Oct. 4 news release. Unit holders as of the close of business Sept. 10 are scheduled to vote during a special meeting on Oct. 18. Upon deal closing, unit holders would get 1.28 ETE common units for each ETP common unit held.

The deal is expected to simplify the partnerships' corporate structure and allow for greater retention of cash, which would be used to fund capital growth projects and distribution increases.

ETP is engaged in transportation, storage and other midstream services for natural gas, crude oil and NGLs. ETE owns the general partner and 100% of the incentive distribution rights of ETP.