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Instablog Follow-up - "PNNW: A Compelling Risk-Arb Opportunity"

|Includes: Pennichuck Corporation (PNNW)

We are posting a brief follow-up to our 01/13/11 Instablog article titled:  "PNNW: A Compelling Risk-Arb Opportunity"

News Event:
On January 27, 2011, Pennichuck Corporation (NASDAQ: PNNW) announced that the Company's Board of Directors declared a quarterly dividend of $0.185 per share payable on March 1, 2011 to shareholders of record as of February 15, 2011. This quarterly dividend remains unchanged from the previous quarter and results in an annualized dividend rate of $0.74 per share.

Analysis:
This dividend declaration comes in as per our prior expectations and provides further justification to establish a risk-arb position prior to the upcoming ex-dividend date.
Based on the 01/27/11 PNNW close of $28.10, the dividend yield is 2.63%, or approximately 240 basis points better than the imputed equivalent US Treasury yield over the expected closing period.

Disclosure:
Long PNNW