With slowly improving Florida economy and now TECO gas, I think TECO would be a strong candidate for buyout either by Florida Power & Light or Progress Energy. It would be easy for either utility to add this area, the combined service would have substantial savings.
<Seems unlikely. All three utilities are good utilities and quite large. Why would the regulators allow a merger. Competition is a good thing for consumers.>
Beyond the initial question of would TE be a good takeover candidate for FPL or PGN, regulators do allow mergers of utility companies which are already highly regulated and act as monopolies in their territories for most of their residential services.
Usually the carrot is that is used to make these happen is that the state utility regulators (customers) and the shareholders share in the synergies created by the merger. Lower rate structures are created and stronger stocks as well.
The ideal offer for companies being taken over is for it to be an all cash offer, but that rarely happens. Offers based on a combination of acquiring company stock and cash is the most common.
I agree it would make business sense, but at what price is the key question for those considering a takeover. Senior management and the board of directors rarely puts the interests of their shareholders at the top of the list when offers are presented to them. They have nice jobs and know they will have to find real work somewhere else if a merger happens. As such, it usually takes a very high offer price to get them to agree to allow it to happen which dampens if not outright kills a lot of potential offers.
Best of luck.
I live in Tampa and have owned TE off and on for 20 years. My wife worked for peoples gas before Te bought them out. At allmost every stock holder meeting for TE or Progress energy buy out always comes up. It sure does make sense. The price is right would like to see TE back up to 20.
I no longer believe TE is a buyout candidate of progress energy.They are in the process of building their own plants, so I cannot see how they can afford it. Not sure if FPL has the capital either. NOTE: I sold my TE holdings yesterday.