Algonquin Power (OTCQB:AQUNF) is taking its case to Gas Natural (EGAS +1.2%) shareholders, calling on them to back its takeover proposals and possibly a change in the target's board.
Algonquin sent a letter to the EGAS board saying it "extended multiple proposals" to acquire the company, which refuses to discuss a potential deal, thus "preventing shareholders from receiving an immediate and compelling premium for their shares."
Algonquin urges EGAS shareholders to demand the board maximize shareholder value through a sale process and to withhold support for incumbent directors in advance of the July 30 annual shareholders meeting.
Gas Natural (EGAS +2.4%) says it rejected three "unsolicited and inadequate" proposals made by Algonquin Power & Utilities (OTCQB:AQUNF) during 2014 to acquire all outstanding shares for $10, $12 and finally for $13.
Shares had spiked into the close Friday after a WSJ report broke the offers and are continuing higher in today's trade.
Natural-gas utility Atmos Energy (ATO +0.4%) has given back most of its early morning gains on a solid FQ3 report late yesterday. The quarter swung to a profit as asset impairment charges weighed on year-earlier results, and as earnings surged in its non-regulated segment. The company also agreed to sell substantially all of its natural gas distribution assets in Georgia to an affiliate of Algonquin Power & Utilities (AQUNF.PK) for about $141M.