Deals
Kelcy Warren Misses Out on Oil Rally as Investors Punish Deal
- Pipe giant Energy Transfer to buy SemGroup for $1.35 billion
- Energy Transfer units fall 4.2% on a day when its peers rise
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On a day when the biggest oil rally in more than a decade boosted most U.S. energy stocks, billionaire Kelcy Warren’s plan to acquire a rival wiped out $1.5 billion of his pipeline giant’s market value.
Energy Transfer LP’s announcement Monday that it agreed to purchase SemGroup Corp. sent the buyer’s units falling the most in a month. Energy investors have been increasingly restive with anything short of strict financial discipline.