Good Monday Evening to all and hope everyone's memorial holiday weekend was a restful and enjoying one...and that we all took the time to observe the day in our own way to rememeber those who have given thier lives for our country.

Now lets begin with some breaking news tonight that will surely make for an interesting Tuesday. Richard Kinder of Kinder Morgan has announced an offer to take Kinder Morgan (KMI) priviate at 100 dollars a share. We can of course know what the obvious benefit is to KMI share holders as the stock closed Friday around 84 so their looking at open tomorrow of 97 ish i guess. But there are implications for Kinder Morgan Partners (KMP) and they should be positive. This is an excerpt from the inital pr release of the buyout.

This buyout proposal reflects the confidence that senior management and the sponsors have in the future growth potential of Kinder Morgan Energy Partners, L.P. (NYSE: KMP - News), as KMI's ownership of the general partner of, and other partnership interests in, KMP represents KMI's largest and fastest growing asset," said Kinder. "KMP would directly benefit in two ways. First, this transaction would enable a new crude oil hedging facility to be implemented for the CO2 business segment that would lock in $1.5 billion in proceeds from future crude sales without requiring the posting of margin. Second, upon completion of the transaction, KMI would offer KMP the option to acquire the Trans Mountain Pipeline and its future expansion opportunities at an attractive price, subject to KMP board approval."

So my guess is that KMP holders should see some nice upside from this. Also isn't it interesting that Richard Kinder waited until after the Enron trial was over to announce this buyout! You can't help but wonder that Mr Kinder did this to drive a symbolic stake in the heart of those who forced him out of Enron at its beginnings with his 40 million in pipeline. A stroke of brilliance imho.

Crude is slightly higher tonight and s&P futures are moving sideways. Looks like we could have a very interesting day tomorrow.