El Paso Pipeline Partners

El Paso Pipeline Partners

We have commenced an investigation into the purchase of a 25 percent interest in Southern Natural Gas Co. (SNG) by El Paso Pipeline Partners LP (NYSE: EPB) from El Paso Corporation (El Paso).

On March 7, 2011, EPB announced that it had agreed to acquire a 22 percent interest in SNG from El Paso for $587 million, and had received an option to purchase an additional three percent interest in SNG. On March 8, EPB announced a public offering of common units and the intention to use the proceeds to finance the SNG purchase. On March 9, EPB announced the pricing of the offering.

EPB is an affiliate of El Paso, and the transactions at issue constitute related-party transactions. Between the announcement of the SNG purchase on March 7 and the close of trading on March 9, following announcement of the pricing of the related public offering, EPB’s common units declined in value by more than 7.7 percent. An intraday stock chart for the relevant period is available here. Wohl & Fruchter’s investigation concerns whether the decision to make the SNG purchase, the price paid by EPB, and the process used to negotiate the purchase with El Paso were entirely fair to EPB.

Persons with relevant information, and EPB unitholders with questions about this investigation, are invited to contact Ethan Wohl at 212 758 4097 or ewohl [at] wohlfruchter [dot] com.