If you're getting 6.5% in dividends, BUY!!!! The current yield is 7.11%, so you can buy now and sell your more expensive shares later.
I agree that this is a good deal for UIL, and the customers. The gas and electric bills will be unified, and the company won't have to have multiple billing operations. Unfortunately, that may mean that some of the billing people from Iberola (if any are included in the deal) may be joining others on unemployment.