Enterprise Announces Potential Combination Discussions
8:00a ET April 29, 2009 (Business Wire)
Enterprise Products Partners L.P. (NYSE:EPD) today announced that Enterprise has proposed to acquire all of the outstanding partnership interests of TEPPCO Partners L.P. (NYSE:TPP) ("TEPPCO"). The consideration proposed by Enterprise included 1.043 Enterprise common units for each issued and outstanding TEPPCO unit and cash equal to $1.00 per TEPPCO unit. Based on the current number of outstanding TEPPCO units, this consideration for TEPPCO units would consist of an aggregate of approximately 109.5 million Enterprise common units and $105 million in cash. This consideration would have represented $21.89 per unit, or a premium of approximately 4.8%, based on the 10-day average closing prices of TEPPCO units and Enterprise common units on March 6, 2009, the business day prior to the date on which Enterprise made this proposal to TEPPCO.

Enterprise made the proposal after consultation with the Audit, Conflicts and Governance Committee of the board of directors of its general partner. The proposal made by Enterprise did not specify consideration to be paid for TEPPCO's general partner interests, including incentive distribution rights, or other financial terms or consideration. Enterprise does not currently own any TEPPCO units.

TEPPCO's general partner interests, including incentive distribution rights, are owned by Texas Eastern Products Pipeline Company, LLC ("TEPPCO GP"). TEPPCO GP is owned by Enterprise GP Holdings, L.P. (NYSE:EPE) ("EPE"). EPE owns approximately 4.2% of the outstanding units of TEPPCO, the general partner of Enterprise and approximately 3.0% of the outstanding common units of Enterprise. Accordingly, Enterprise expects definitive terms of any combination will require the approval of the Audit, Conflicts and Governance Committees of the general partners (the "ACG Committees") of Enterprise, TEPPCO and EPE. Enterprise cannot predict whether the terms of a potential combination will be agreed upon initially by the ACG Committees of the general partners of TEPPCO and Enterprise, or whether any potential combination if agreed upon by Enterprise and TEPPCO would be acceptable to the board of directors of EPE's general partner or its ACG Committee. Enterprise also believes that any combination with TEPPCO would require the approval of TEPPCO's unitholders in accordance with its partnership agreement.

Enterprise does not intend to comment further on discussions unless and until a definitive agreement is reached.