(Adds Targa's response stating discussions with Energy Transfer
terminated, share details)
June 19 Midstream energy company Targa Resources
Corp said on Thursday it is no longer in discussions
with Energy Transfer Equity LP, the pipeline company
controlled by billionaire Kelcy Warren, regarding a deal.
Targa responded to a Bloomberg report on Thursday that said
Energy Transfer is near a deal to buy Houston-based Targa
Resources and its energy logistics operating unit Targa
Resources Partners LP.
Targa confirmed that the company and its operating unit
"previously engaged in high-level preliminary discussions
regarding a potential business combination with Dallas-based
Energy Transfer Equity, and certain of its affiliates ... (but)
those discussions have been terminated," Targa said.
Bloomberg reported that Targa Resources and Targa Resources
Partners could be valued at more than $15 billion, citing people
familiar with the matter.
The deal involved another midstream energy company, Regency
Energy Partners LP, which is controlled by Energy
Transfer, the report said.
The deal, in cash and stock, could have been one of the
largest ever arranged by Warren, Bloomberg reported.
Targa Resources has a market value of $6.35 billion and
Targa Resources Partners has a market capitalization of $9.51
Representatives for Energy Transfer could not be immediately
reached for a comment.
Earlier this week, pipeline company Williams Cos Inc
agreed to acquire control of natural gas and oil gathering
services provider Access Midstream Partners LP for
$5.99 billion, aiming to enlarge its role in the U.S. natural
Shares of Targa Resources were down 12.25 percent at $132.10
in extended trading on Thursday, and those of Targa Resources
Partners fell 10.23 percent at $73.20.
(Reporting by Ankit Ajmera in Bangalore; Editing by Maju
Samuel, Cynthia Osterman and Ken Wills)