Algonquin Power & Utilities Expresses Interest in Acquiring Western Wind

Algonquin Power & Utilities Corp. has expressed interest in acquiring Western Wind, a renewable energy developer with assets in California and Arizona, though the two companies now dispute whether Algonquin has made a formal offer.

Of interest to Matters readers is that Algonquin Power & Utilities Corp. is in the process of acquiring Granite State Electric and EnergyNorth Natural Gas (National Grid's New Hampshire distribution companies). Additionally, aside from a portfolio of generation assets in both Canada and the Northeast U.S., Algonquin has launched a full requirements wholesale supplier and retail supplier.

Western Wind Energy Corp. initially claimed yesterday that Algonquin Power & Utilities had made an unsolicited bid for Western Wind, valued at $2.50 (Canadian) per share. Western Wind characterized the price as a "low-ball" offer that represented half of its valuation.

Algonquin Power & Utilities responded by expressly disavowing any assertions made by Western Wind, and said that it had only provided a non-binding expression of interest in engaging in discussions with Western Wind to determine whether an opportunity exists to create shareholder value.

Western Wind countered by claiming that Algonquin has solicited numerous large Western Wind shareholders to support a $2.50 share bid and said that, "in fact, one shareholder holding 18.6%, has entered into a lock-up agreement with Algonquin to support that bid."