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The extension of TransAlta Corp.'s (NYSE:TAC) hostile bid to acquire Canadian Hydro Developers Inc. (PINK:CHDVF) until September 11, offers more time for a competing offer to surface – only, investors in the alternative energy company shouldn't count on it, says Michael Goldberg, Blackmont Capital analyst.

"While the extension gives [Canadian Hydro] management extra time to locate a white knight, we believe that justifying an offer significantly above the current share price would be difficult and there is limited upside to holding the shares in hopes of another strategic bid."

Assuming they haven't already, Mr. Goldberg told clients to take profits on Canadian Hydro, and left his UNDERPERFORM rating unchanged.

If the TransAlta bid is successful at $4.55 per share, Canadian Hydro shares, which closed at $5.12 on Thursday, will "fall substantially from current levels," he said.

Source: Take Profits in Canadian Hydro, TransAlta Extension Aside