Williams Raises Acquisition Capital (WMB, WPZ)

Williams Companies, Inc. (NYSE: WMB) has just filed to raise capital under a public offering of 26,000,000 shares of its common stock.  At current market prices the offering would raise close to $793 million.

The company intends to use the net proceeds from the offering to purchase additional Williams Partners L.P. (NYSE: WPZ) common units.  This is in connection with the financing of the previously announced acquisition by Williams Partners L.P. of Caiman Eastern Midstream, LLC that on March 19, 2012.

Barclays, Citigroup, UBS Investment Bank, Deutsche Bank Securities and J.P. Morgan are acting as joint book-running managers. The underwriters have been granted a 30-day option to purchase up to an additional 3,900,000 shares of common stock.

Williams shares closed down 0.3% at $30.59 and the 52-week trading range is $21.90 to $33.47.  The company’s market capitalization rate is now $18.1 billion based upon the most recent closing price.  The stock is indicated down about 1.9% after the close on the news.

Realistically, this may be one of those offerings that should have been anticipated.

JON C. OGG