Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, January 10, 2011

TAKEOVERCHATTER-Low premiums on the rise in power sector

The U.S. power sector could be among the hottest industries for deals in 2011, but shareholders may not see the benefits for some time. Low-premium deals have become common in the sector and we could see more as utilities look to add growth and stability by combining, bankers and analysts said. It has become difficult for utilities to justify steep premiums for competitors, as regulators may take back cost savings from deals in the form of rate cuts for customers.