US pipelines operator KMI in 22 billion dollar buyout

0 Comments | AFP, August, 2006

HOUSTON, United States (AFP) — US pipelines operator Kinder Morgan Inc. (KMI) said it was being taken over through a management buyout worth 22 billion dollars. The deal, which includes seven billion dollars in debt, will see chief executive Richard Kinder, co-founder Bill Morgan, other board members and investment partners pay 107.50 dollars for each share held by KMI stockholders.

The purchase price is a premium of about 27 percent over 84.41 dollars, the closing price of KMI stock on May 26, the last trading day before the management-led investors proposed to take the company private. The partners involved in the takeover include Goldman Sachs Capital Partners, American International Group, The Carlyle Group and Riverstone Holdings. "We are proud to partner with this...