Wed, Sep. 9, 3:59 PM
- A big options trade is raising suspicions after it netted an $11M profit when TECO Energy (TE +0.6%) announced it was being taken over just two days later.
- On Sept. 1, an investor bought 35K TE calls that granted the right to buy shares at $22.50 by November expiration, and more than 36K of those call options were traded by the end of the day, boosting total options volume in TE to a record high; TE shares closed that day at $20.82, and Emera agreed to buy TE shortly thereafter for $27.55/share.
- The investor bought the 35K November 22.50 calls for $0.70, and the call option closed at $3.85 on Tuesday, the first trading day after Friday’s deal news - "no way around it... a very suspicious trade in terms of size and profitability and timing,” says Trade Alert's Henry Schwartz.
Tue, Sep. 8, 6:42 PM
- Company officials say they expect TECO Coal will not be a part of TECO Energy (NYSE:TE) when Emera Energy's (OTCPK:EMRAF) $10.4B deal to buy the utility company closes in mid-2016.
- "Emera and TECO both agree that we need to exit the coal business, and our expectation is that's going to happen sooner rather than later," TE CEO John Ramil said during a conference call earlier today.
- TE shares jumped 25% in today's trade in reaction to the acquisition, announced after Friday's close.
Fri, Sep. 4, 5:14 PM
- TECO Energy (NYSE:TE) +24.1% AH after agreeing to be acquired by Canada-based energy company Emera (OTCPK:EMRAF) in a $10.4B deal, including $3.9B of debt.
- The $27.55/share price is a 30% premium over today's closing price and a 48% premium based on TE's unaffected closing stock price on July 15, the last trading day prior to news reports regarding the company's strategic review.
- The companies say the merger creates a North American energy leader with more than $20B of assets and more than 2.4M electric and gas customers.
May 30, 2013, 9:38 AMSunTrust analyst Ali Agha doesn't expect a competing bid against Berkshire's offer for NVE Energy (NVE +22.7%), but he lists small- and mid-cap utilities with a one- or two-state focus that could be viewed as potential takeover targets: CMS Energy (CMS +1.8%), Great Plains Energy (GXP +3%), PNM Resources (PNM +1.9%), Pinnacle West (PNW +2.3%), Teco Energy (TE +0.3%). | May 30, 2013, 9:38 AM | Comment!
May 28, 2013, 8:23 AMTeco Energy (TE) agrees to acquire New Mexico Gas Co from utility holding company Continental Energy Systems for $750M in deal that will provide Teco with an additional 509,000 gas customers, giving it a total of 1.5M. Teco will also assume around $200M in New Mexico debt following the deal. (PR) | May 28, 2013, 8:23 AM | Comment!
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