TransAlta target of $7.8-billion takeover bid

[Otto-matic]

ransAlta Corp. is the target of an American private-equity takeover valued at about $7.8 billion -- $39 per share in cash. The Alberta-based power generator has received a non-binding approach from LS Power Equity Partners, which is a related company to hedge fund Luminus Management LLC, and Global Infrastructure Partners, a joint venture of Credit Suisse and General Electric Co.
TransAlta said its board "will carefully consider the letter and will respond in due course."

http://www.ctv.ca/servlet/ArticleNew...721?hub=Canada

The proposed bid comes just months after Luminus publicly attacked the management of TransAlta chief executive officer Steve Snyder, who favours building new facilities to replace the company's aging coal plants.
Luminus instead pushed for a more aggressive strategy of taking on debt for acquisitions while returning cash to shareholders, but failed to attract support from other investors.

http://www.reportonbusiness.com/serv.../Business/home

I know CP has some posters who like to discuss takeovers.

[Vulcan]

I don't know about takeovers but I don't think we should allow our essential services to fall into foreign hands. When push comes to shove will American owners divert our electricity down south at our expense, if N. America has an energy crunch. Now I'll be accused of being anti-American but I'm not, I'm just about protecting our own resources first. This is a time our government should step in but with NAFTA maybe we can't.

[red sky]

$39/share isn't far off from their 52 week high. I wouldn't be surprised if there was another bid from a different power company for a few more dollars a share. If not, then I fully expect TransAlta to not accept the offer.

[mykalberta]

I dont think there is a need to worry about foreign takeover of power companies. both sides of the border pay the same market rate for power. Also the ones making the offer are known as expansionists, sure they have done this via debt financing but they currently have over 10K of MW generation projects underway in the US.

More power generation in Alberta would be welcome IMO.

The mused in the G&M that this offer was likely made to spur other offers and to make TransAlta's board more open to looking for a takeover.

[Otto-matic]

I don't know about takeovers but I don't think we should allow our essential services to fall into foreign hands. When push comes to shove will American owners divert our electricity down south at our expense, if N. America has an energy crunch. Now I'll be accused of being anti-American but I'm not, I'm just about protecting our own resources first. This is a time our government should step in but with NAFTA maybe we can't.

I agree, I hope they reject the offer and keep Transalta a Canadian corp

[3 Justin 3]

Originally Posted by Otto-matic

I agree, I hope reject the offer and keep Transalta a Canadian corp

I will second that. I hated when Wendy's (American) bought Tim Hortons! As I am aware they sold it back or something, but it is now Canadian again?