MarkWest Hydrocarbon go-shop period ends; merger with MarkWest Energy continues as planned

By Angela McDaniels

Seattle, Oct. 8 - MarkWest Hydrocarbon, Inc. said the go-shop period under its proposed merger with MarkWest Energy Partners, LP has ended.

During the 30-day period, MarkWest Hydrocarbon's board of directors held discussions with more than a dozen potential transaction partners, according to a news release, and none of the discussion resulted in a proposal superior to the proposed merger with MarkWest Energy.

As a result, the companies said they continue to work together to complete the merger in a "timely manner." The transaction is expected to close in late 2007 or early 2008 and remains subject to stockholder, unitholder and regulatory approvals.

As previously reported, MarkWest Energy and MarkWest Hydrocarbon agreed on Sept. 6 to a merger valued at $734 million.

MarkWest Hydrocarbon shareholders will receive about 15.4 million common units of MarkWest Energy plus $240 million cash, or $61.12 per share.

MarkWest Hydrocarbon shareholders may elect to receive 1.285 common units of MarkWest Energy and $20.00 cash per share, all cash, or all common units, subject to proration.

Following the merger's close, MarkWest Hydrocarbon will become a direct, wholly owned subsidiary of MarkWest Energy and will be managed by the current MarkWest Energy management team.

MarkWest Energy is a Denver-based publicly traded limited partnership and processor of natural gas. MarkWest Hydrocarbon, a natural gas marketer, controls and operates MarkWest Energy.

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