Kinder in $5bn pipeline splash

TransCanada Corp

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Eoin O'Cinneide

 30 January 2013 16:08 GMT

US giant Kinder Morgan Energy Partners is looking to make grabs on significant home shale plays with the $5 billion acquisition of a midstream player.

The Houston-based energy behemoth is getting its hands on fellow Texan Copano in an all-shares deal.

Kinder Morgan is to acquire all the outstanding shares of Copano for a total of $5 billion which includes debt. Copano shareholders will get 0.4563 of Kinder Morgan's shares for each unit, with the deal valuing Copano shares at $40.91 apiece.

The deal is expected to take until the third quarter to close.

Explaining the rationale behind the move, Kinder Morgan chairman and chief executive, Richard Kinder, said:  “As a result of this acquisition, we will be able…

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