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What: Shares of Duncan Energy Partners
So what: The proposed deal, in which Enterprise would exchange 0.9545 of its units for each of Duncan's, values Duncan at about $2.4 billion and represents a 28% premium to yesterday's close. The move would allow Enterprise, which already owns 58% of Duncan, to own the company in full and significantly expand its pipeline services.
Now what: The offer seems like an attractive one for Duncan. In addition to a juicy premium, the proposal gives Duncan shareholders a chance to, as Enterprise CEO Michael Creel puts it, "participate in the future growth of Enterprise, which has a backlog of pending capital projects and a more diverse existing asset base." For those who would rather cash out now, rivals El Paso
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