Oneok's (OKE) $18.8 billion deal for Magellan Midstream Partners (MMP) announced over the weekend shouldn't come as too much of a surprise. After all, the oil and gas pipeline and storage industry has been ripe for consolidation. What perhaps did take investors off guard was the steep drop in Oneok stock when markets opened Monday.
While it's not uncommon for shares in an acquiring company to falter after making a deal announcement, Oneok stock gapped down as much as 10% at one point soon after the opening bell. Magellan Midstream Partners stock, for its part, popped 15% on the news.
