OTTAWA, Oct 2 (Reuters) - Takeover target Canadian Hydro Developers Inc said on Friday it is in negotiations with multiple parties as it seeks alternatives to TransAlta Corp's C$654 million ($605.5 million) bid.
The renewable energy producer has argued it can do better than TransAlta's hostile offer of C$4.55 a share, which was extended on Friday for a fourth time, moving the deadline to Oct 14 from Oct. 2.
Canadian Hydro said earlier on Friday that it was 'advancing the process to generate superior value', and repeated its recommendation that shareholders reject TransAlta's bid, which it describes as inadequate.
Canadian Hydro shares, which have consistently traded above TransAlta's original July offer, closed at C$5.01 on the Toronto Stock Exchange. TransAlta ended at C$21.12.
Last week Canadian Hydro said it had received a number of proposals from other suitors after opening its books to try to attract a sweeter deal.
Analysts have said that companies ranging from power utilities to infrastructure firms to financial institutions could find Canadian Hydro's wind and hydroelectric power assets attractive.
In August, Canadian Hydro said it had doubled its size in the previous eight months as two large wind farms began power production. Executives forecast positive quarter-over-quarter gains through 2009 and 2010, with adequate free cash flow generation to fund the equity portion of developing one 100 megawatt project annually.
($1=$1.08 Canadian)
(Reporting by Susan Taylor; editing by Rob Wilson) Keywords: CANADIANHYDRO/TRANSALTA (susan.taylor1@thomsonreuters.com; +1 613 235 8385; Reuters Messaging: susan.taylor1.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The renewable energy producer has argued it can do better than TransAlta's hostile offer of C$4.55 a share, which was extended on Friday for a fourth time, moving the deadline to Oct 14 from Oct. 2.
Canadian Hydro said earlier on Friday that it was 'advancing the process to generate superior value', and repeated its recommendation that shareholders reject TransAlta's bid, which it describes as inadequate.
Canadian Hydro shares, which have consistently traded above TransAlta's original July offer, closed at C$5.01 on the Toronto Stock Exchange. TransAlta ended at C$21.12.
Last week Canadian Hydro said it had received a number of proposals from other suitors after opening its books to try to attract a sweeter deal.
Analysts have said that companies ranging from power utilities to infrastructure firms to financial institutions could find Canadian Hydro's wind and hydroelectric power assets attractive.
In August, Canadian Hydro said it had doubled its size in the previous eight months as two large wind farms began power production. Executives forecast positive quarter-over-quarter gains through 2009 and 2010, with adequate free cash flow generation to fund the equity portion of developing one 100 megawatt project annually.
($1=$1.08 Canadian)
(Reporting by Susan Taylor; editing by Rob Wilson) Keywords: CANADIANHYDRO/TRANSALTA (susan.taylor1@thomsonreuters.com; +1 613 235 8385; Reuters Messaging: susan.taylor1.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
