CALGARY, Alberta, Aug 27 (Reuters) - TransAlta Corp extended its C$654 million ($600 million) hostile bid for Canadian Hydro Developers Inc on Thursday, after securities regulators refused to block its target's poison pill plan earlier this week.
TransAlta, Canada's biggest investor-owned power producer, extended its C$4.55 per share offer, set to expire on Thursday, to Sept. 11, as it looks to snap up Canadian Hydro's portfolio of green hydroelectric and wind power projects.
However the extension still doesn't meet the terms of Canadian Hydro's shareholder rights plan, which requires any offer to be open for 60 days.
TransAlta would have had move the closing date of its offer to at least Sept. 21 to comply, but a company spokesman declined to say why it had decided not to align its offer with its target's poison pill.
'Ours is the only offer on the table right now,' said Michael Lawrence, a spokesman for TransAlta. 'The additional two weeks provides shareholders ... ample time to asses the merits of our offer.'
Earlier this week, TransAlta asked the Alberta Securities Commission to block the shareholder rights plan, a request the commission denied. Such plans typically flood the market with new shares if a hostile bidder seeks to take a controlling interest, making an acquisition prohibitively expensive.
Canadian Hydro has rejected TransAlta's offer and its board is searching for a higher alternative bid.
Canadian Hydro shares fell 1 percent to C$5.12 on Thursday on the Toronto Stock Exchange while TransAlta rose 0.3 percent to C$21.78.
($1=$1.09 Canadian)
(Reporting by Scott Haggett; editing by Rob Wilson) Keywords: TRANSALTA CANADIANHYDRO/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) 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.
TransAlta, Canada's biggest investor-owned power producer, extended its C$4.55 per share offer, set to expire on Thursday, to Sept. 11, as it looks to snap up Canadian Hydro's portfolio of green hydroelectric and wind power projects.
However the extension still doesn't meet the terms of Canadian Hydro's shareholder rights plan, which requires any offer to be open for 60 days.
TransAlta would have had move the closing date of its offer to at least Sept. 21 to comply, but a company spokesman declined to say why it had decided not to align its offer with its target's poison pill.
'Ours is the only offer on the table right now,' said Michael Lawrence, a spokesman for TransAlta. 'The additional two weeks provides shareholders ... ample time to asses the merits of our offer.'
Earlier this week, TransAlta asked the Alberta Securities Commission to block the shareholder rights plan, a request the commission denied. Such plans typically flood the market with new shares if a hostile bidder seeks to take a controlling interest, making an acquisition prohibitively expensive.
Canadian Hydro has rejected TransAlta's offer and its board is searching for a higher alternative bid.
Canadian Hydro shares fell 1 percent to C$5.12 on Thursday on the Toronto Stock Exchange while TransAlta rose 0.3 percent to C$21.78.
($1=$1.09 Canadian)
(Reporting by Scott Haggett; editing by Rob Wilson) Keywords: TRANSALTA CANADIANHYDRO/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) 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.