Just a day after Energy Transfer backed out of the $33 billion acquisition of Williams, nearly half of Williams’ board members resigned after a failed attempt to oust Williams’ CEO Alan Armstrong.
Former board member Eric Mandelblatt stated in a public letter that he and five other board members quit Thursday after the current board members were against pushing out Armstrong who Mandelblatt said is “incapable” of increasing shareholder value and “lacks the necessary judgment and character” that is needed to lead Williams after the turmoil with Energy Transfer.
The merger of Energy Transfer and Williams would have created one of the country’s largest pipeline companies. As the oil and gas prices continued to plummet last year and into this year, Energy Transfer no longer found the merger feasible and formally called off its deal to buy Williams on Wednesday.
Believing Energy Transfer is breaching contract by ending the deal, Williams will seek damages against the company that could be up to $10 billion.