M&A in the Utilities Sector

Excerpt from our One Page Annotated Wall Street Journal Summary (which you can get emailed to you every morning by signing up here):

WPS Is Far Along In Talks to Buy Peoples Energy

• Summary: Wisconsin utility WPS Resources Corp. (WPS) is in advanced discussions to purchase Chicago gas utility Peoples Energy Corp. (PGL) for about $1.5 billion. Peoples Energy stock is down 13% in the last year while other gas utilities are up 6%, and is trading at 16.7 times current earnings versus 18.9 times for the gas utility group.