Corvex Signs Agreement with Soroban Capital Partners Regarding Williams Companies, Inc. (WMB)

Keith Meister’s hedge fund Corvex Capital, has disclosed surging its position in Williams Companies, Inc. (NYSE:WMB) following the signing of an agreement with Eric W. Mandelblatt’s Soroban Capital Partners. In aggregate both funds hold around 36.1 million shares of the company. According to the filing, Soroban and Corvex are the largest shareholder of Williams Companies. They have economic interests in around 60.3 million shares and share equivalents, which represent 8.82% of the outstanding shares.

Keith Meister

Both funds have agreed to discuss and come to a mutual agreement regarding several issues such as nomination of directors to the company’s board, or entering into negotiation with Williams Companies, regarding its management, or other corporate matters, among other things.

Reports suggest that they may ask for representation in the company’s board of directors. Corvex seeks to enhance the value of the company’s assets and to optimize the capital structure and also the dividend policy. It may also ask WMB to nominate Keith Meister and Eric Mandelblatt to the company’s board.

Williams Company (NYSE:WMB) is engaged in connecting hydrocarbon reserves to their respective markets. The company operates in North America and the operations span from Gulf of Mexico to the Canadian oil sands. A joint venture of the company, with Bluegrass Pipeline LLC, and Boardwalk Pipeline Partners, LP (NYSE:BWP), is in the process of building another pipeline to connect the resources to their markets. The bidding is expected to close on January 17, 2014. This pipeline will provide for the transportation needs of Utica and Marcellus shale plays.

” Extending our open season provides potential shippers with more time to evaluate how our proposed project fits their growing needs for NGL transport, fractionation, export and other end-use market options,” stated John Haynes, senior vice president and chief commercial officer for Boardwalk Pipeline Partners.

Keith Meister trained under activist investor Carl Icahn before founding Corvex Capital in March 2011. The fund has received seed capital of $250 million from George Soros. Keith is an activist investor just like Carl Icahn. Soroban Capital manages funds in excess of $8.83 billion.

Both Corvex Capital and Soroban Capital Partners have substantial long positions in Williams Companies Inc (NYSE:WMB). Fir Tree, managed by Jeffrey Tannenbaum, comes on the third position with 7.52 million shares valued at $273.3 million at the end of the third quarter.

Disclosure: none

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