Tulsa Based SemGroup Rejects Takeover Bid From Houston Company - NewsOn6.com - Tulsa, OK - News, Weather, Video and Sports - KOTV.com |

Tulsa Based SemGroup Rejects Takeover Bid From Houston Company

Posted: Updated:
SemGroup was located at 61st and Yale in Tulsa. SemGroup was located at 61st and Yale in Tulsa.


TULSA, Oklahoma -- Tulsa based SemGroup announced Monday it has rejected a hostile takeover bid from a Houston pipeline company.

SemGroup's Board of Directors said PlainsAll American Pipeline LP undervalued the company. It also noted the bid was "opportunistic and not compelling as it fails to adequately reflect SemGroup's bright prospects for stockholder value creation."

The Wall Street Journal reported the Houston company was seeking to spend $1 billion on SemGroup's outstanding shares.

Read news release from Plains All American Pipeline LP.

The WSJ says PAA made an earlier offer to buy SemGroup, but was rejected earlier this month.

"We are disappointed that SemGroup's Board of Directors has refused to engage in constructive discussions with us regarding a possible transaction," said Greg L. Armstrong, PAA's Chairman and Chief Executive Officer.

The WSJ says PAA controls about 16,000 miles of crude oil and refined fuel pipelines stretching from western Canada to West Texas and the Gulf of Mexico.

SemGroup operates 2,400 miles of crude oil, natural gas, refined fuels and natural gas liquids pipelines stretching from Canada to South Texas and Mexico.

10/24/2011 Related Story: Co-Founder Of Tulsa-Based SemGroup Settles With SEC

Special Features

Live Traffic

Get the latest road conditions on Green Country roadways.

iPhone App

Get breaking news, weather, sports & video directly on your iPhone.

CBS Shows

Watch your favorite CBS shows for free online.


Looking for a website or event you heard mentioned on News On 6? Find it here!

TV Schedule

Need to know what's on TV? Check out our television schedule.

Live Radar

WARN Interactive
Powered by Frankly
News On 6
303 N. Boston Ave.
Tulsa, OK 74103
Newson6.com is proud to provide Oklahomans with timely and relevant news and information, sharing the stories, pictures and loves of Oklahomans across our great state.
All content © Copyright 2000 - 2018 KOTV. Oklahoma Traveler™ is a registered trademark of Griffin Communications. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.