Seeking Alpha

Exelon to buy Pepco for $27.25 per share

  • The all-cash deal represents a 29.5% premium to the average price of Pepco Holdings (POM) over the last twenty trading days, and the acquisition is expected to be significantly accretive to Exelon's (EXC) adjusted earnings in the first full year after closing.
  • POM +5% premarket to $23.93.
  • Press release
Comments (7)
  • peteryzhang
    , contributor
    Comments (66) | Send Message
     
    When will EXC pay more dividend to its shareholders?
    30 Apr, 08:59 AM Reply Like
  • vireoman
    , contributor
    Comments (859) | Send Message
     
    ..."the acquisition is expected to be significantly accretive to Exelon's (EXC) adjusted earnings in the first full year after closing"...

     

    If the above proves true, along with the approaching EPA rules on power plant emissions, I wouldn't worry about dividend increases. That will take care of itself.
    30 Apr, 09:16 AM Reply Like
  • peteryzhang
    , contributor
    Comments (66) | Send Message
     
    Hope that is not yet another silly acquistion...
    30 Apr, 09:43 AM Reply Like
  • WPSPIKER
    , contributor
    Comments (1141) | Send Message
     
    They should have made the deal more of a stock for stock, as (EXC) was moving up over last few months. It provides a good chance to pick up some more of (EXC) at a basis less than it has been. I don't know anything about (POM) so will have to look at them more. Might be worth buying them here nearly a buck under the price for a year?

     

    Mark
    30 Apr, 09:53 AM Reply Like
  • len811
    , contributor
    Comments (28) | Send Message
     
    I think POM inflated recent earnings, making them seem more attractive. I bought POM some years ago and was considering selling since the price has gone up, especially very recently (maybe some insiders trading?) and I did not think it would be sustained. So, naturally, glad I had not yet acted!
    30 Apr, 12:27 PM Reply Like
  • sop2510
    , contributor
    Comments (5) | Send Message
     
    Wasn't it only a week or two ago that Exelon said it would consider shutting down one of its best performing nuclear plants because running it was not cost-effective? EPA is forcing fossil units to shut down; natural gas prices are going up; where's the beef?
    30 Apr, 02:46 PM Reply Like
  • Brian Sanders
    , contributor
    Comments (628) | Send Message
     
    POM with very weak fcf trend and high debt that's growing. Business isn't even profitable at the moment. CEO is dumping shares. -- Alrighty then..
    30 Apr, 03:22 PM Reply Like
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