Sept 4 (Reuters) - U.S. pipeline operator Williams

Companies ( WMB ) on Wednesday denied extending any offer to oil

and gas transportation firm Targa Resources ( TRGP ), after a

report said the latter had rebuffed a takeover interest from the

former.

Bloomberg News reported earlier on Wednesday that the

Houston-based natural gas pipeline operator viewed an offer from

Williams as undervaluing the company and had "rebuffed" the

informal takeover interest in recent months, citing people with

knowledge of the matter.

"To be clear, Williams has not extended any offer to Targa

Resources ( TRGP ), nor are there any deliberations to do so," a Williams

spokesperson told Reuters in an emailed statement.

The U.S. pipeline and storage sector is seen as ripe for

deals following increased consolidation among oil and gas

producers.

Last month, pipeline operator ONEOK ( OKE ) said it would

buy midstream assets in deals worth $5.9 billion from Global

Infrastructure Partners.

Targa Resources ( TRGP ) has a market valuation of $32.84 billion,

per LSEG data, while Williams Companies ( WMB ), which runs the

interstate Transco and Northwest pipelines, stands higher at

$55.52 billion.

(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini

Ganguli)