ETE shares spike after it terminates $33 billion merger deal

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Energy Transfer Equity (ETE) shares rose 2 percent on Wednesday after the company officially pulled out of a $33 billion merger deal with the Williams Companies.

ETE terminated the deal after a Delaware Court of Chancery ruled in favor of the company saying it had the right to end the agreement.

The Williams Companies appealed the Court's decision on Monday stating that ETE "breached the Merger Agreement by failing to cooperate and use necessary efforts to satisfy the conditions to closing."

In the case of ETE, it originally wanted to do the deal at that price and was willing to do so because it needed to secure future cash flows to plug holes in what will be cash flows that are coming down as contracts roll off in 2017, 2018 and 2019.

Williams stockholders approved the merger transaction with ETE following the ruling.

ETE shares have fallen 54 percent in the past 12 months.

Energy Transfer Equity 12-month performance

— CNBC's David Faber contributed to this report.