ALLENTOWN — If Riverstone Holdings’ plan to acquire Allentown-based Talen Energy goes through, it will cost the New York City-based private equity firm about $1.2 billion to purchase the 65 percent of shares in the company it doesn’t already own.
But Riverstone won’t be plopping down a wad of cash. Most of that money, close to $1 billion, will come from Talen’s own cash reserves. The rest will come from a new $250 million term loan that will go on Talen’s balance sheet. Google "Talen Energy takeover raises debt concerns" BY SCOTT KRAUS, OF THE MORNING CALL / PUBLISHED: JUNE 28, 2016
Much of what you say is correct, but this time the money that is left will still be chasing stocks
I think the volume today supports your theory of a higher offer down the road.
The deal also includes a “go-shop” agreement, in which Talen may actively “solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals.” The period will last for 40 days.
The deal includes a termination fee of $50 million, payable by Talen Energy to Riverstone in the event that the agreement is terminated for a superior proposal, but that would be reduced to $25 million if Talen Energy accepts a superior proposal made during the go-shop period.
So what is fair market value? That is up to the market to decide. Nuke plants being shutdown across the country...the current administration potentially the next administration have vowed to kill coal, so what is Talen really worth...whatever people are willing to pay. It wasn't that long ago Talen was under $6.00/sh. People that bought then are more than happy with $14.00/sh.
I invested 30 minutes to watch the YouTube video, "The Endgame Of The Shadow Government Is To Get Rid Of National Sovereignty: James Perloff." Interesting stuff and this is my assessment. Concerning 50% of the points Perloff made - I felt they were complete fantasy, while I was in agreement with his other 50%. Ironically, at one point in my life, I thought the 50% I now agree with were complete fantasy. My only recommendation of the YouTube video, "The Endgame Of The Shadow Government Is To Get Rid Of National Sovereignty: James Perloff" would be, view at your own risk. One might also be interested in reading "None Dare Call It Conspiracy" by Gary Allen. The book was written in 1971, and many, including James Perloff believe the things outlined in the book are happening now! Additionally, there is a 60 minute YouTube video available titled "None Dare Call It Conspiracy - Gary Allen" if you'd rather listen to Gary Allen. The Amazon book review comments of Dare Call It Conspiracy are also and interesting reads.
Is this the title of the video you speak of? The Endgame Of The Shadow Government Is To Get Rid Of National Sovereignty: James Perloff
I sold 100% at 12.97. Was disappointed the rest of the day, but I am fine with it. Google, 11 Signs That The U.S. Economy Is Rapidly Deteriorating Even As The Stock Market Soars, After reading this, became fine with my decision.
my feed indicated you replied about 1500, but I don't see it on this thread.
when I googled, NEI US Nuclear Operators, Owners and Holding Companies I didn't see owners of a nuclear power plant that resembled a private equity firm. are we headed into uncharted waters?
Seems like we are pretty much on the path Hudson says we are on. Do you have any idea what will happen to Talen stock price during the LBO? Could the buyout price actually be lower than the current stock price? Will there be an extended regulator approval process like there was during the spinoff? Will shareholder vote on this to approve of disapprove. Does it seem feasible for a private equity group to own SSES? Any thoughts by you would be much appreciated?
Is this the description of the video you are talking about? FRA - 04 27 16 - THE WALL STREET ECONOMY HAS TAKEN OVER THE ECONOMY w/Michael Hudson
It seems that much of the Talen run has been on lower than average volume. Today reversed that trend. However, a significant amount of that volume came at the end of the trading day when TLN gave up half of its daily gain. Wonder if this downward slide at the end of the day will continue in the morning. Over the last year TLN has traded nearly exactly the same as NRG
I agree with your flipper analogy, but I have some questions. If Talen is taken private, doesn't it seem reasonable that SSES will not be part of that deal? Also, wouldn't the shareholders expect a buyout price higher than the current stock price?
Talen Energy has halted its efforts to get a new reactor for the Susquehanna Steam Station, and has asked the Nuclear Regulatory Commission to stop working on its application to construct it, said Todd Martin.
The company is not planning to make any substantial investment in the project in the near future, he added.