* Unit to also hold assets acquired in ETP's $5.35 bln
* Drop down to occur when Sunoco deal closes
June 18 Pipeline operator Energy Transfer Equity
will drop down its interest in Southern Union Co
into a new unit, which will be controlled by related company
Energy Transfer Partners LP.
The unit, which will be called ETP Holdco Corp, will also
include assets acquired in Energy Transfer Partners LP 's
$5.35 billion buy of Sunoco Inc in April.
The pipeline industry has seen a flurry of activity spurred
by development of shale oil and gas fields and master limited
partnership (MLP) structures that have provided the industry
with rich tax breaks.
In the MLP structure, general partners drop down or transfer
suitable assets into the MLP from time to time.
Energy Transfer Equity will hold a 60 percent interest in
the new entity while Energy Transfer Partners will own the
remaining 40 percent.
"This new entity will increase Energy Transfer Partners'
scale of operations and its ability to serve more customers in
the rapidly expanding midstream marketplace," Energy Transfer
Equity Chairman Kelcy Warren said in a statement.
The drop down is expected to occur when Energy Transfer
Partners' deal with Sunoco closes.
The companies said interests in Sunoco Logistics Partners LP
will be transferred to Energy Transfer Partners, prior
to the drop down.
Energy Transfer Equity, which is the owner of the general
partner of Energy Transfer Partners, bought rival Southern Union
Co for $5.5 billion after it won a bidding war with Williams Cos