HARTFORD: In spite of the announcement by Connecticut Water Services [Nasdaq: CTWS] that it is going ahead with its merger with the San Jose Group [NYSE: SJW], Eversource [NYSE: EV] doesn’t sem ready to throw in the towel.
The company released a statement challenging CTWS’s statements about its bidding process, saying, “Connecticut Water confirmed yesterday that its “go-shop” process failed to solicit even a single additional indication of interest. Rather than being designed to solicit potentially superior proposals for the benefit of Connecticut Water shareholders, the “go-shop” process instead failed to reflect a sincere intention to consider superior alternatives.”
Eversource upped the ante with its statement, potentially providing an argument to regulators who have to approve the merger or perhaps a court saying, “without providing access to further diligence or access to company management or modifying the termination fee, while simultaneously providing San Jose Water with additional rights to protect its takeover transaction, Connecticut Water’s severely limited “go-shop” process was set up only to solidify San Jose Water as its acquirer.”
The Boston based utility says it has publicly and privately “reiterated its superior proposal and demonstrated how additional value would accrue to the benefit of shareholders of Connecticut Water.”
Eversource’s statements also points to a bid by the California Water Service [NYSE: CWT] for San Jose as potential fly in the ointment of the CTWS merger. San Jose has rejected the bid from California Water but that company is also not ready to walk away from their offer yet as well saying, “instead of sitting down to negotiate a transaction with California Water that can deliver value to its stockholders, and benefits customers, communities and employees, SJW is grasping at an ever-shrinking list of ‘reasons’ for rejecting our cash tender offer.”