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Great Plains Energy Incorporated Message Board

  • alphonsox48 alphonsox48 Feb 14, 2007 8:39 PM Flag

    AQUILA ILA. ....WHY ?

    Why is GXP paying/offering a premium price,( that is reportedly far above present stock market value) for Aquila..ILA
    Is this in the best fiduciary interests of the GXP shareholders.?
    Any views.?

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    • Are you familiar with the Strategic Energy part of GXP and what do you think of the operation?

    • I believe when the deal was announced that ILA was trading above $4.50. It dropped after the announcement it was being acquired. So the premium being paid was really insignificant based on where the ILA price was when the deal was announced, IMO. To really evaluate this deal you need to understand the value of ILA's generating assets, and customer base. It has a contiguous regulated territory to GXP. ILA's institutional investors think the deal is too cheap, but that is just based on market price. I think this is a good deal for GXP, and in the long run will modestly benefit its' shareholders.

    • Your Calc..correct.
      However,
      At any price , we think ILA is still the alltime and ultimate financial dog.
      But what do we know,we've only been watching it disintigrate for over ten years.
      Good luck..

    • In my experience, the buying company always pays more than the current stock price to include some assumed future appreciation of the company being purchased. A few cents more per share than current market price would not seem out of the ordinary to me.

    • Dear MME Noire -

      Has fonzo told you about the "ladies" in his
      "investment club" They are actually his sex slaves.
      We learned all about it on the ILA board . Please
      be careful and not let this happen to you .

      The reason the Green boys are selling out is to get
      away from fonzo . They felt that they had to assign
      someone to track his negativity . Whenever they did
      this , the employee would resign . Personnel turnover
      got to be too much for them .

    • Accounting 101 Grade at mid term = D-

      $31.75 times .0856 equals $2.72 plus $1.80 = $4.52, not $4.61.

      To quote Homer Simpson, "Dope!"

    • Accounting 101
      Today Thursday Feb 15.
      Apparent offer for ILA. Aquila.
      Reported as $1.80 cash for ILA .
      .plus 0.0856 GXP stock.(31.75 /todays market value)
      By our calc's
      Indicates a price for ILA of $4.61
      Market price today for ILA is only $4.20
      Difference $0.41.PREMIUM ..being paid by GXP
      WHY.????
      Is there something wrong here.??
      Strange.

 
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