CVPS officials did not provide details about the talks, which are slated to begin this week.
According to a press release from the company, the CVPS Board “determined, in good faith and after consultation with its financial advisors and outside legal counsel that the Gaz Metro proposal is reasonably likely to lead to a superior proposal.”
Fortis, Inc., $13 billion holding company that has a wide-ranging portfolio of subsidiaries, including large utilities in Canada and Central America, and real estate and hotel properties in Canada, made an offer of $35.10 per share for CVPS on May 30.
The rival bid from Gaz Metro, a Montreal-based firm that owns Vermont Gas Systems and Green Mountain Power, was made on June 23. The offer includes $21 million in ratepayer benefit proposals that are required by the Vermont Public Service Board (Fortis was obliged to make the same commitment.) Stockholders will win out regardless of who takes over the company: Gaz Metro has bid 15 cents more per share for CVPS than Fortis’ offer of $35.10. Both bids are a solid $10 more than the strike purchase price of about $24 per share.”
Robert Dostis, the head of external affairs, said Green Mountain Power is pleased that they are exploring this.
“We’re pleased they’re exploring this,” Dostis said. “We’ll be talking this week, providing more details, but their board will ultimately make the decision.”
Green Mountain Power CEO Mary Powell will be in Rutland tomorrow to meet with local legislators and business people, Dostis said.
In a statement, CVPS officials said: “There can be no assurances as to the outcome of any discussions with Gaz Metro, and CVPS will not provide any further updates on discussions with either Gaz Metro or Fortis until such time as the CVPS Board has made a final determination with respect to the Gaz Metro proposal.”
