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Energy Transfer Equity also is looking to purchase pipeline company, once based locally.

NEW YORK — The bidding war is intensifying for pipeline company Southern Union Co.

Williams Cos. said Thursday it is increasing its offer in an effort to top a competing bid from Energy Transfer Equity LP.

The new all-cash offer of $44 a share values Southern Union, which has about 125 million shares outstanding, at about $5.5 billion. Williams’ previous bid was $39 a share, but Energy Transfer topped that earlier this month with an offer of $40 a share.

Southern Union, from 2001-2006 based in Wilkes-Barre and Scranton, owns and operates 20,000 miles of pipelines.

Williams said Southern Union would complement its own business, create a network of nearly 30,000 miles of regulated pipelines and save $50 million a year for the combined companies.

It said that including debt, its latest offer for Southern is valued at $9.4 billion.

The latest bid is 5.7 percent premium to Southern Union’s closing price on Wednesday and 56 percent higher than shares were before the first offer in June.

Southern Union shares gained $1.82, or 4.4 percent, to $43.42 in trading Thursday.

Dallas-based Energy Transfer Equity had offered $33 per share for the company in mid-June. A week later, Williams offered $39 per share. Earlier this month, Energy Transfer Equity raised its bid to $40 a share.

As part of the latest offer, Williams said it has strengthened its deal to make it less prone to regulatory hurdles and quicker to close. It also said the cash deal is not subject to any financing conditions.

Williams is giving Southern Union less than a week to finalize the terms of the transaction; it wants to end those discussions by Tuesday.

Williams Cos., which is still on track to split up its exploration and production businesses by fall, is based in Tulsa, Okla.