KMI merger arbitrage

	A	B	C	D	E	F	G	H	I	J	K
1
2
3	Underlying	Share price*	Coverts to...	Shares of KMI		Merger consideration	Premium	Original Premium	Last quarterly dividend	Projected dividends	Change
4	KMI	17.24							0.43	0.5	16.28%
5	KMP	102.03		2.1931	$10.77	$48.58	-52.39%	12.00%	1.39	$1.41	1.36%
6	KMR	104.71		2.4849		$42.84	-59.09%	16.53%	1.39	$1.24	-10.62%
7	EPB	44.1		0.9451	$4.65	$20.94	-52.51%	15.44%	0.65	$0.61	-6.55%
8
9	Underlying		Cost to "buy" 1 share of KMI				Discount	Original Discount
10	KMI	17.24
11	KMP		$36.21				210.03%	89.28%
12	KMR		$42.14				244.42%	85.81%
13	EPB		$36.30				210.57%	86.63%
14
15	KMR/KMP spread
16	Ratio pre-merger announcement 8/10/2014			1.043105687
17	Current ratio			0.9744055009
22
23	*Data is from Google Finance. Google Finance sometimes has errors so do not assume that the data is correct or that the quotes are as real-time as claimed. I may have made errors in this spreadsheet.
24
25	KMP unitholders will receive 2.1931 KMI shares and $10.77 in cash for each KMP unit. This results in a price of $89.98 per unit, a 12 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 11.4 percent based on the July 16 closing price reference date used by the parties during the negotiation of the transaction.
26	KMR shareholders will receive 2.4849 KMI shares for each share of KMR. This results in a price of $89.75 per share, a 16.5 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 16 percent based on the July 16 reference date used by the parties in the negotiation. The parties negotiated consideration for KMR shares equal to the consideration for KMP units, using the July 16 reference date.
27	EPB unitholders will receive .9451 KMI shares and $4.65 in cash for each EPB unit. This results in a price of $38.79 per unit, a 15.4 percent premium based on the Aug. 8, 2014, closing prices. This is a premium of 11.2 percent based on the July 16 reference date used by the parties in the negotiation.
28	Both KMP and EPB unitholders will be able to elect cash or KMI stock consideration subject to proration.
29	http://phx.corporate-ir.net/phoenix.zhtml?c=119776&p=irol-newsArticle&ID=1957205&highlight=
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104