Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Canadian electric utility CH Energy (NYSE: CHG ) surged 13% today after the company agreed to be purchased by Fortis for what amounts to $65 per share.
So what: The deal, which is expected to close by early next year, will involve no layoffs assuming CH Energy shareholders approve it. Fortis has agreed to assume $500 million worth of CH Energy's debt.
Now what: It's always odd when the purchaser trades above the potential buyout price. Currently at $66.15, there's almost a 2% premium to Fortis' buyout offer, which sometimes implies the potential for a bidding war. I personally don't see that happening and think shareholders might be getting a bit overanxious at this level. With little upside left in the stock, I'd say it might be time to let this one go.
Craving more input? Start by adding CH Energy to your free and personalized watchlist so you can keep up on the latest news with the company.