Gaz Metro Limited Partnership will acquire Central Vermont
Public Service Corp. (CV) after the Vermont electricity utility
determined Gaz Metro's $35.25-a-share offer was superior to a
competing bid from Fortis Inc. (FTS.T).
This deal paves the way for the combination of Central Vermont
with Gaz Metro's Green Mountain Power Corp. subsidiary, creating
the largest electricity distributor in Vermont.
Last month, Gaz Metro topped Newfoundland-based Fortis'
$35.10-a-share bid for Central Vermont, which had been agreed to in
May. With the end of the Fortis deal, Central Vermont has agreed to
pay Fortis a $17.5 million termination fee, plus $2 million in
merger expenses.
Central Vermont values the Gaz Metro deal at $702 million,
including the assumption of about $230 million of debt. The offer
represents a premium of 45% over the company's closing price of
$24.32 on May 27, the last trading day before the Fortis deal was
announced.
-By Judy McKinnon, Dow Jones Newswires; 416-306-2100;
judy.mckinnon@dowjones.com
Order free Annual Report for Central Vermont Public Service
Visit http://djnewswires.ar.wilink.com/?link=CV or call
1-888-301-0513