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.
Tue, Sep. 8, 12:41 PM
Tue, Sep. 8, 9:14 AM
Fri, Sep. 4, 5:36 PM
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.
Mon, Aug. 10, 7:15 PM
- Macquarie analyst Andrew Weisel makes a bullish case for utilities such as Edison International (NYSE:EIX), American Water Works (NYSE:AWK) and Aqua America (NYSE:WTR), noting that regulated utilities have boosted dividends by a median of 6.4% over the past year despite ambitious capex plans, and valuations look attractive.
- Weisel prefers growth over yield, emphasizing that utilities with a top-quartile long-term growth outlook consistently outperform those with top-quartile dividend yields; he forecasts the fastest growth for EIX, AWK and WTR, and the slowest for Duke Energy (NYSE:DUK), PPL Corp. (NYSE:PPL) and Teco Energy (NYSE:TE).
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
Wed, Aug. 5, 5:43 PM
Thu, Jul. 30, 7:44 AM
Wed, Jul. 29, 9:09 AM
Thu, Jul. 16, 3:55 PM
- TECO Energy (TE +17.8%) says it is exploring strategic alternatives, as it responds to a spike in the stock ~90 minutes ago caused by a SparkSpread report suggesting the company might be up for sale.
- TE says it will not make any further statements unless and until it actually enters into a definitive sale agreement.
- Shares are now active after being halted off and on since ~2:30 ET.
Mon, Jun. 8, 10:39 AM
- TECO Energy (TE -0.2%) says it entered into a non-binding letter of intent with an undisclosed new buyer at an undisclosed price for the sale of all of its interest in coal subsidiary.
- TE last year agreed to sell TECO Coal to Kentucky-based Cambrian Coal, but the deal fell through because Cambrian could not satisfy the conditions it needed to close by June 5; the sale price initially was set at $170M, but the price later dropped to $140M.
- TE expects the sale to allow it to focus exclusively on its regulated utilities, Tampa Electric, Peoples Gas and New Mexico Gas.
Wed, Apr. 29, 9:11 AM
Tue, Apr. 28, 4:29 PM
Tue, Feb. 10, 11:58 AM
- TECO Energy (TE +0.3%) is upgraded to Buy from Neutral with a $22 price target, up from $19, at UBS, which says the 7% drop since the Q4 earnings report and reduction in the base price for TECO Coal is overdone.
- Following the divestiture of the coal business, TE should trade at a premium given its favorable jurisdictions and lack of rate cases on the horizon, the firm believes.
- UBS also thinks TE's above-average growth rate and size makes it a potential M&A target, "with slower-growth large-cap utilities looking to use their premium currencies."
Mon, Feb. 9, 7:08 AM
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