Several Williams Companies director have reportedly resigned after a proposed merger with Energy Transfer Equity (ETE) failed earlier this week.
Sources told Reuters that six directors left the company on Thursday after they failed to win the requisite votes to oust CEO Alan Armstrong.
The company’s chairman, Frank MacInnis, was reportedly among those who resigned.
Keith Meister, head of Corvex Management LP, and Eric Mandelblatt, head of Soroban Capital Partners, also reportedly resigned.
Corvex and Soroban are among the largest investors in Williams, Reuters said.
Sources also told Reuters that Ralph Izzo, Steven Nance and Laura Sugg stepped down from their positions on the board.
According to Reuters, all the directors who resigned their posts had voted in favor of the merger.
Oklahoma-based Williams has not commented on the matter.
The resignations came barely a day after a proposed merger between Williams and ETE failed.
ETE walked away from the merger on Thursday after the Delaware Court of Chancery found last week that the company was contractually entitled to terminate the merger agreement.
The court found that ETE was entitled to terminate the agreement after the company’s outside tax counsel, Latham & Watkins, was unable to deliver a required tax opinion prior to the outside merger date included in the agreement.
Williams has appealed the decision to the Delaware Supreme Court.
A court date for the appeal has not been disclosed yet.
“Williams recognizes the practical fact that ETE has refused to close the merger. Williams has concluded that it is in the best interests of its stockholders to seek, among other remedies, monetary damages from ETE for its breaches,” Williams said on Thursday.
The proposed merger, valued at $37.7 billion, was fraught with legal trouble.
Williams filed three lawsuits against ETE during the process, including a suit filed in May aimed at stopping ETE from terminating the deal.