November 18, 2011 [OPIS] – Oklahoma-based SemGroup Corporation said on Thursday that it has sent a letter to Plains All American Pipeline LP reiterating SemGroup's board of directors' rejection of the unsolicited, unchanged proposal by Plains All American to acquire all of the outstanding shares of SemGroup for $24 per share in cash.
Plains All American’s unsolicited proposal was originally made on Oct. 6 and is $4.72 lower than the closing price of SemGroup on Tuesday. Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, the SemGroup board has reviewed the unsolicited, $24 per share proposal and determined that it substantially undervalued the company and its future prospects.
The SemGroup board believes that the $24 per share proposal is opportunistic and does not provide any reasonable basis from which to begin discussions or negotiations with Plains All American.
SemGroup is a publicly held company that moves energy safely through a network of pipelines, terminals and storage tanks. SemGroup provides gathering, transportation, processing, storage, distribution, marketing and other midstream services primarily to independent oil and natural gas producers, refiners of petroleum products and other market participants located in the Midcontinent and Rocky Mountain regions of the United States and in Canada, Mexico and the United Kingdom.
