Targa falls back after takeover rumour

Quashed: pipeline company not immediate takeover target

Shares of midstream player Targa Resources fell after it quashed rumours it was about to be taken over by Energy Transfer Equity on Thursday.

Bloomberg had reported a deal between Energy Transfer and Targa was near completion. According to the news wire, the deal could have valued Targa at $15 billion in what would have been one of the largest energy deals of the year.

Houston-based Targa confirmed late Thursday that its energy logistics operating unit had "previously engaged in high level preliminary discussions regarding a potential business combination with Energy Transfer Equity and certain of its affiliates".

However, "those discussions have been terminated", Targa said.

"There are no assurances whether or not discussions could resume or whether any agreement could be entered into in the future."

Targa Resources Partners' stock jumped by around 20% amid the rumours on Thursday but was down more than 10% at $72.80 in morning trade on the NYSE on Friday.

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