NEW YORK Aug 27 U.S. pipeline company Plains
All American Pipeline LP said it offered around $740
million in stock to buy the 54 percent of PAA Natural Gas
Storage LP that it does not already own.
Plains said on Tuesday it sent a proposal to PAA's
independent directors that offered the company's unitholders
0.435 common units of Plains All American for each PAA unit.
That values the natural gas storage company's units at $22.38
each, a 6 percent premium over their $21.09 value as of
In addition to holding 46 percent of PNG's common units,
Plains also owns the partnership's general partner, its
incentive distribution rights, and all of its Series A and
Series B subordinated units.
"It is difficult to predict the timing and extent of a
recovery in natural gas storage market conditions," Plains Chief
Executive Greg Armstrong said in a statement. "Accordingly, it
is clear that the next several years will be challenging for PNG
on a stand-alone basis."
PAA acknowledged that it had received the bid and said the
bid is subject to the negotiation, execution and approval of a
definitive agreement by its board.