Talen Energy will likely have a similar corporate culture as PPL, which could bode well for those who hope the relationship with Lake Wallenpaupack remains unchanged. Paul A. Farr, PPL’s current chief financial officer, will be Talen’s president, and many PPL employees are expected to transfer to the new company.
When tuna fish is on sale, buy tuna fish.
With the economy poised to really takeoff, investors want hot stocks...not fuddie-duddie utility stocks like PPL.
It has been indicated to me that Talen will not pay a dividend as its goal will be to raise shareholder by performing in a manor which will raise the price of the stock, but I do love this... Spence said PPL will maintain the current dividend rate — $1.49 per share on an annualized basis — on its common stock until the close of the transaction and intends to grow the dividend under the fully regulated business model.
Mine, I was looking at the 5 day trend comparing PPL with AEP, EXC, FE, PEG & DUK and we were right in the middle of the pack...not arguing, just clarifying.
PPL is pretty much following the same trend as most other electric utilities, plus the spinoff was probably priced in before the "news."
(1) There are a lot of approvals to get through...in its entirety, the deal might not go through and there possibly could be a deal breaker along the way. (2) The future is difficult to predict...you could wind up being better off in the long run regardless of what happens to the dividend. (3) Your combined equity in both companies could be be substantially larger than what PPL in its current configuration might be down the road. (4) Market reactions so far has been favorable to this move. (5) If possible, you could sell your PPL and pickup other utility companies with dividends you fell are more secure. (6) Finally, when you are in the middle of something like this, it's not unusual for it to seem like your life is in crisis. There is a popular myth stating the Chinese ideogram for "crisis" is actually a combination of their symbols for "danger" and "opportunity. Like most myths, this one is not true either. However, a crisis in fact can be an opportunity for you. We both have skin in this game and I certainly do not know how it will turn out for me, but like they say, whatever is going to happen is going to happen and it's up to me to make the best of it.
How so? Another thing comes to mind... PA could have a new governor before this deal is closed out...I wonder if Wolf or Corbett will have any say in this matter or if they will even be asked to make any statements?
This seems like a financial arrangement to me...anybody here with business experience care to speculate on how this might play out for shareholders, executives, workers, retirees?
As always minesweep, your insight and logic is spot on. My next question would be are there any private equity groups currently operating nuclear power plants in the USA? BTW, there used to be a fellow on this board who, like you was always full of good information and I think his name was something like lechspring...is he still around?
I assume they are talking about generation plants. I nuke plant part of the deal? Wouldn't that be a keeper in light of the Obama attack on carbon?
If you believe that the U.S. economy is heading in the right direction, you really need to read this article. As we look toward the second half of 2014, there are economic red flags all over the place. Industrial production is down. Home sales are way down. Retail stores are closing at the fastest pace since the collapse of Lehman Brothers. U.S. household debt is up substantially, and in 20 percent of all U.S. families everyone is unemployed. http://bit.ly/1ikfUf9
According to CEO Bill Spence, ‘The supply segment is undervalued in PPL's share price and we are "committed" to fixing this problem.’ Industry experts say, one possibility is that PPL spins off its power plants. Among PPL Energy Supply's biggest assets is the Susquehanna nuclear power plant. By next year, PPL and Newark-based PSEG are expected to have completed construction of the controversial Susquehanna-Roseland transmission line, which will allow electricity generated at the nuclear power plant to flow across the Delaware Water Gap National Recreation Area into New Jersey, where PSEG operates the state's main electric utility. During a recent conference call, analysts repeatedly asked about PPL Energy Supply. Spence, however, divulged little. "We are looking for the best opportunity we have to create shareholder value," he said. "We don't have a specific timeline. We are being disciplined about the process."
I've heard it said a 1000 times that PPL will never sell their nukes...and with the Roseland line going it, those huge nukes will be even more valuable. http://www.psegtransmission.com/reliability-projects/susquehanna-roseland
Am I correct in that you are saying; (1) PPL will sell its generation, (2) stock price will rise approximately another $2.50, and (3) these will happen roughly 9 months out? Is this speculative talk or do you have a basis for saying such?