Williams Slides to 6-Year Low on Speculation of Deal Trouble

Williams Cos., the pipeline company that agreed to be bought by Energy Transfer Equity LP in September, fell to a six-year low as credit downgrades and slumping energy prices exacerbated concerns over the $38 billion deal.

A 60 percent slump in the value of both stocks since Energy Transfer offered $43.50 apiece for Williams in cash, stock, or a combination of both, has fueled uncertainty over the deal, Skip Aylesworth, who owns 3 million Williams shares among the $1.5 billion he manages for Hennessy Funds, said. There’s concern Energy Transfer may have to cut payouts to fund expansions planned by Williams, he said.