Summary
Williams Companies, Inc. (WMB) filed an 8-K on June 13, 2001, detailing two significant events. The company announced it has accepted the purchase of over 16.7 million shares of Barrett Resources Corporation (BRR) common stock tendered in its offer. This acquisition will be funded through a newly established Credit Agreement dated June 11, 2001, involving several major financial institutions, including Citibank, N.A., Merrill Lynch & Co., and Lehman Commercial Paper Inc. Additionally, the report discloses the filing of a second amended complaint in a class action lawsuit, Quinque v. Kern River, et al., on June 8, 2001. Fourteen Williams affiliates have been named as defendants in this suit, which alleges mismeasurement techniques used for natural gas heating content, resulting in purported underpayment of royalties to producers. While the damages are unspecified, the suit seeks treble and potential punitive damages. Williams has not yet been served and plans to contest the complaint.
Key Highlights
- 1Williams accepted the purchase of 16,730,502 shares of Barrett Resources Corporation (BRR) common stock as part of a tender offer.
- 2Funding for the BRR share purchase will be secured through a new Credit Agreement dated June 11, 2001.
- 3Key financial institutions involved in the Credit Agreement include Citibank, N.A., Merrill Lynch & Co., and Lehman Commercial Paper Inc.
- 414 Williams affiliates were named as defendants in a second amended class action complaint filed on June 8, 2001 (Quinque v. Kern River, et al.).
- 5The class action lawsuit alleges mismeasurement of natural gas heating content leading to royalty underpayments.
- 6The lawsuit seeks unspecified damages, including treble and potential punitive damages.
- 7Williams entities have not yet been served and intend to challenge the complaint procedurally.