El Paso Corp. (EP)’s shareholders approved Kinder Morgan Inc. (KMI)’s $24 billion takeover, which will create the biggest U.S. pipeline company.
About 79 percent of shareholders voted and 95 percent voted in favor of the deal, El Paso said in a statement today. The vote was delayed three days to give shareholders time to consider a Delaware judge’s ruling in a lawsuit challenging the merger, which pointed out conflicts of interest among the advisers and executives who negotiated the deal.
The premium that Kinder Morgan (KMI) offered was high enough to offset those concerns, said Dan Spears, a partner at Swank Capital LLC in Dallas whose firm owns shares in both Kinder Morgan and El Paso.
“I think it was a good value for the shareholders,” he said in an interview.
The merger is still being reviewed by the Federal Trade Commission, Kinder Morgan said in a March 7 filing. It is expected to close in the second quarter of this year.
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