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Shares of M&A target Puget Energy (PSD) jumped last week as Washington state regulators finally approved the company's acquisition by Macquarie and a group of pension funds.

Still, rather oddly, the shares are well below the $30 take out price (at $27 and change right now) for a deal that should be closing in 1Q09 as far as I have understood. Perhaps financing and Macquarie & Friends' commitment to the deal is in question, but hard to see how as we have large pension funds involved and the investors have waited patiently for a regulatory outcome, now in their favor.

A M&A worth watching. Some similar spreads have been captureable in recent months since confidence is generally lacking these days.

Disclosure: None

Source: Puget Energy: An Interesting Spread to Watch