OKE - EIP sends second letter to Magellan board slamming proposed Oneok deal
2023-07-17 10:27:43 ET
Magellan Midstream Partners ( NYSE: MMP ) unitholder Energy Income Partners sent a second letter Monday urging holders to vote against the proposed merger of Magellan and Oneok ( NYSE: OKE ).
EIP, which prefers a stand-alone Magellan Midstream ( MMP ), said unitholders would end up ~10% worse off from the merger because the up-front tax payment and loss of after-tax dividend income exceed the merger premium by $7/unit, a $1.5B loss of value.
"In Magellan's case, as one of the oldest publicly traded partnerships, the amount of deferred tax that is triggered by this merger is substantial and renders the proposed merger unattractive for Magellan unitholders in aggregate," says EIP, Magellan's ( MMP ) fourth largest shareholder.
More on proposed Magellan-Oneok merger:
- Oneok Is A Buy With Or Without Magellan Midstream
- Magellan Midstream: Long-Term Investors Should Reject Oneok Deal
- Oneok And Magellan May Be Stronger Together But Face Opposition From Unitholders
For further details see:
EIP sends second letter to Magellan board slamming proposed Oneok deal