Proxy advisers back Oneok’s USD 18.8bn deal for Magellan

September 11 (SeeNews) - Each of proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis & Co (Glass Lewis) have recommended that shareholders of US natural gas operator Oneok Inc (NYSE:OKE) vote in support of its USD-18.8-billion (EUR 17.5bn) agreement to buy local pipeline operator Magellan Midstream Partners (NYSE:MMP).

Additionally, ISS and Glass Lewis have recommended in separate reports that Magellan unitholders vote in favour of the pending acquisition, Oneok said in a press release.

The cash-and-stock deal, whose value includes the assumption of debt, was agreed upon in the middle of May. The tie-up faces opposition from certain investors, including Energy Income Partners LLC, the fourth largest shareholder in Magellan.

In June, EIP said it believes that taxes paid by investors will exceed the premium offered by Oneok and any other potential benefits from the merger, noting that Magellan should better remain a stand-alone entity whose returns on invested capital are far superior to the agreed tie-up.

(USD 1 = EUR 0.931)