Kinder Morgan, Houston, is being taken private in a $22 billion deal by a consortium of company executives and private equity firms that are providing $15 billion in equity, said Larry Pierce, Kinder Morgan spokesman. The firms are GS Capital Partners, American International Group, The Carlyle Group and Riverstone Holdings.
Goldman Sachs Credit Partners, Citigroup Global Markets, Deutsche Bank Securities, Wachovia Securities and Merrill Lynch are assuming $7 billion in debt, Mr. Pierce said. Kinder Morgan stockholders will receive $107.50 in cash for each share of KMI common stock. Richard Kinder, who will remain chairman and CEO of Kinder Morgan, will reinvest his 24 million KMI shares, according to a news release.
Shareholders sued to stop the deal in June, contending that the proposed purchase price of $100 per share was inadequate. Those lawsuits are ongoing but are not expected to have an impact on closing of the deal, expected in early 2007, following shareholder vote and regulatory approvals, Mr. Pierce said. A shareholder meeting to vote on the deal has not been scheduled.