El Paso Pipeline falls on plans for stock offering
NEW YORK (AP) — Shares of El Paso Pipeline Partners LP fell Tuesday after the company detailed a new offering of stock that would dilute the value of current shares.
After the market closed Monday, the company announced that it priced an offering of 7.1 million new shares at $34.34 each. The company gave underwriters a 30-day option to buy another 1.065 million shares.
On Tuesday, the shares lost 79 cents, or 2.2 percent, to $34.69. They briefly plunged to $34.15, even below the offering price, before recovering during midday. They have traded between $30.64 and $38.36 during the past year.
Tuesday's volume was heavy, with more than 7.6 million shares changing hands. On an average day, about 333,000 shares are traded.
The company is a limited partnership created by the former El Paso Corp., now part of Kinder Morgan Inc., to own and operate natural gas pipelines and storage facilities.