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A merger that I have had my eye on since its announcement is Puget Energy (PSD). Puget Energy is a holding company but performs all of its operations through Puget Sound Energy which is a utility based in Seattle, right in my backyard.

As with most utility companies in a merger or privatization deal, the deal is nearing its one year announcement date of October 26, which is something I look for because news from one year ago on Wall Street is history. As with the merger of Aquila (ILA), there are many approvals to be acquired but so far things have been progressing nicely.

I bring this up today because with the panic that set in yesterday with the financial markets melting down, PSD was also included in the sell off.

If the deal is finalized, PSD is to be converted to $30 in cash. It was trading in the $24’s at one point yesterday morning and closed at $27.60 on Friday. The 8% drop just goes to show that the market is full of emotion. Who said markets were efficient?

I won’t be going over the details here as I want to get back to looking at the deal again and other potential bargains due to yesterday's drop.

In the meantime, here is an interesting interview by Steve Reynolds, chairman, president and CEO of PSD to add to your research.

Disclosure: I own shares of PSD

Source: Puget Energy a Sound Investment Even During a Market Meltdown