S&P Capital IQ Reiterates Hold Rating on El Paso, Target Price Raised

October 18 00:00 2011

NEW YORK, October 18 (RainbowNewsLine.com) – Analyst Tanjila Shafi of S&P Capital IQ reiterates HOLD rating on the shares of El Paso Corp.( NYSE: EP). The target price is raised from $21 to $27.

Analyst Tanjila Shafi, in a research note published yesterday mentions that the company has announced Kinder Morgan Inc. (NYSE: KMI) has agreed to take over all its outstanding shares for $38 billion, including its net debt. The planned agreement will reduce shareholder’s exposure to the high growth but volatile E&P business of KMI. The analyst believes the combined venture will offer growth opportunities, and raised the target price based on the terms of the agreement. The proposed deal is expected to close on Q2 ‘2012 pending regulatory approval.