The U.S. Federal Trade Commission said it would require Kinder
Morgan Inc. (KMI) to sell three natural gas pipelines and other
related assets in the Rocky Mountain region in order for the
pipeline transportation company to receive approval for its
proposed acquisition of El Paso Corp. (EP).
The requirement is part of a settlement resolving charges that
Kinder Morgan's acquisition of El Paso would be anticompetitive,
the FTC said.
Kinder Morgan agreed to buy El Paso in a cash and stock deal
valued at $21.1 billion when announced in October. In March, El
Paso shareholders overwhelmingly approved the sale, which would
create North America's largest natural-gas pipeline operator.
Kinder Morgan in March also agreed to sell certain Kinder Morgan
Energy Partners L.P. (KMP) assets to get FTC approval for the El
Paso acquisition.
The FTC said that if Kinder Morgan failed to divest the required
assets within 180 days, the proposed order allows the commission to
appoint a divestiture trustee to oversee the sale.
In April, Kinder Morgan, which owns Kinder Morgan Energy's
general partner, reported sharply lower first-quarter earnings.
Kinder Morgan shares were up 1.2% at $36.34 in recent trading
and have climbed 13% this year.
-By Anne Pallivathuckal, Dow Jones Newswires; 212-416-2736;
anne.pallivathuckal@dowjones.com