Although Exelon could be forgiven for swearing off future deals after enduring a painfully drawn-out approval process for its acquisition of Pepco, the management team has expressed an appetite for another merger. If the company completed due diligence on an alternative acquisition, a follow-up deal could come sooner than you might expect.
The District of Columbia's Public Service Commission looks set to approve Exelon Corp's proposed takeover Pepco Holdings, if the acquirer agrees to additional terms. Investors can expect more deals to come in the utility sector--and long delays for regulatory approval.
We highlight some of the key investment themes that stood out after three days of presentations and talking to management teams at the Edison Electric Institute's annual financial conference, one of the premier events for utility analysts and industry insiders.
The Dow Jones Utilities Average has been under pressure since late January 2015, when concerns about the Federal Reserve raising interest rates gave investors a reason to take profits and put the brakes on a rally that had pushed the index to a record high.
Although utility stocks caught a bid in early July, recent weakness in the broader market has hit the sector, leaving the index at roughly the same level as a year ago.
In April 2013, I left my job of 25 years as founding editor of Utility Forecaster to form my own publishing company and write the investment newsletter of my dreams: Conrad’s Utility Investor. The publication’s second birthday is as good a time as any to review where utility stocks have been and my outlook for where they’re headed.
Reports circulated earlier this month that Florida-based TECO Energy had put itself up for sale, prompting the utility to confirm that the firm had engaged Morgan Stanley to “explore strategic alternatives.” This news triggered a record single-day gain in TECO Energy’s shares and provides yet another sign of accelerating mergers and acquisitions activity.
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