Citi Has Buy on El Paso Pipeline Partners

Citi Investment Research is out with a research report on El Paso Pipeline Partners, L.P. (NYSE: EPB) and it has a Buy rating and a $41 price target on shares.

In a note to clients, Citi Investment Research writes, "Yesterday, Kinder Morgan (KMI) announced plans to acquire EPB's general partner, El Paso Corporation (EP), for an estimated $38 billion including minority interests. While this transaction all but completely takes away EPB's drop-down story, KMI would own the general partner of both KMP and EPB making a potential simplification transaction likely given EPB's substantial distribution coverage of 1.20x for 2012E."

Shares of EPB are down $1.00 in pre-market trading to $37.01.