Sector Update: Utilities; Algonquin Power Offers to Buy EGAS, TransAlta Declares Dividend


Utility stocks were generally higher in afternoon trading. The S&P/TSX Utilities index was up 0.3%.

Algonquin Power (AQN.TO): -0.4%

TransAlta (TA.TO): +0.2%

ATCO (ACO-X.TO): +0.1%

Fortis (FTS.TO): +0.2%

Emera (EMA.TO): +0.4%

In corporate news, Algonquin Power & Utilities Wednesday said it has sent a letter to the Gas Natural Inc. ( EGAS ) board of directors emphasizing that it has "extended multiple proposals" to acquire Gas Natural only to be told the company is "not for sale." The most recent bid was US$13 a share while AQN already owns about 4.9% of its target. Gas Natural "refuses" to discuss a proposed deal, it added. A statement reads: "Through its self-preserving pursuit of an undefined and uncertain standalone plan, Gas Natural's board is preventing shareholders from receiving an immediate and compelling premium for their shares."

Algonquin urged Gas Natural shareholders to demand that the Board maximize shareholder value through a sale process. It also encouraged other shareholders to withhold support for incumbent directors and what it called "value destructive resolutions" in advance of the July 30, 2014, annual shareholders' meeting.

Meanwhile, TransAlta Tuesday after hours reported that its board of directors declared a quarterly dividend of C$0.18 per share on common shares payable on October 1 to shareholders of record at the close of business August 29.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: EGAS

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