Big downside potential if this controversial deal gets killed by emboldened Obama Justice department anti-monopolists

So the detailed Morningstar analysis is summarized below:

What if the Obama Justice Department nixes this deal? If they didn’t like AT&T and an also ran T-Mobile combining for anti-competitive reasons, they’ve got to be pretty emboldened by the possibility of quashing a deal where there is very real potential for monopolistic behavior. I’m hearing they’re getting a mouthful from the other competing pipeline companies.  At any rate the Puts on EP are pretty cheap considering the downside potential.  It might be a good speculation to bet this deal down not up.

Kinder Morgan Merger With El Paso Will Create Value For Most Stakeholders8 comments |  December 6, 2011  |

By Jason Stevens

The merger of Kinder Morgan Inc. KMI and El Paso EP will work out very well for their shareholders as well as those holding Kinder Morgan Energy Partners KMP and Kinder Morgan Management KMR, in our view. Prospects are somewhat less rosy for unitholders of El Paso Pipeline Partners EPB, as the partnership will no longer be the sole recipient of asset drop-downs from El Paso.

via Kinder Morgan Merger With El Paso Will Create Value For Most Stakeholders – Seeking Alpha.