TransAlta closer to Canadian Hydro buyout

TransAlta notifies Canadian Hydro shareholders of acquisition offer, points to board approval

• By The Associated Press
• On 12:26 pm EDT, Friday October 9, 2009

TransAlta Corp. said Friday it was sending a notice to Canadian Hydro Developers shareholders about its latest offer to buy the company and a Canadian Hydro board recommendation that they accept it.

The Canadian power producer said the notice reflects the increased offer of 5.25 Canadian dollars ($5.04) per share and an extended expiration date of Oct. 20. The amended offer, announced earlier this week, is valued at about 1.6 billion Canadian ($1.5 billion).

The mailing also will notify Canadian Hydro shareholders of a change to a Canadian Hydro directors' circular that includes a unanimous recommendation that they accept the offer, TransAlta said.

On Monday, TransAlta and Canadian Hydro announced they had agreed on the deal, with the support of both companies' boards.

The transaction would accelerate TransAlta's plan to become the largest publicly traded provider of renewable energy in Canada.

Canadian Hydro Developers operates wind, hydro and biomass facilities in Alberta, Ontario, Quebec and British Columbia. It also has development projects in western and eastern Canada.

Shares of TransAlta slipped 2 cents to $21.88 in midday trading.