A Delaware judge says Texas pipeline company Energy Transfer Equity can back out of its proposed $33 billion acquisition of Williams Cos.
Friday's ruling came in a lawsuit filed by Williams to hold Energy Transfer to the deal.
The companies announced in September that Dallas-based Energy Transfer would acquire Williams, based in Tulsa, Oklahoma. Williams shareholders were to receive Energy Transfer stock, $6 billion cash, and a special dividend.
But the deal became less attractive as oil prices plummeted.
Energy Transfer later said it has been unable to get an opinion from attorneys confirming a tax-free exchange, which is a deal requirement.
Williams argued that Energy Transfer was using the tax opinion as a ruse to miss a June 28 merger deadline and was deliberately trying to scuttle the deal.