AltaGas Ltd T.ALA

This could happen any time..to lock value :Is ALA NEXT?

[bossu]

Mergers and acquisitions activity has exploded. Here’s why – and the reasons it will continue for the foreseeable future

IN THE CASE OF ALA ''Splitting or selling the whole business!
Money is flowing and interest cost very low for a big deep pocket company or Fund looking for revenue stability an dividend.

I'm ready to let it go but bid the good price  at $ 30 !

The takeover frenzy is fuelled by low interest rates, banks’ willingness to lend and soaring stock market valuations. There’s also confidence in the boardrooms of buyers, and realism among leaders of smaller companies that are typically takeover targets. “Potential sellers realize that valuations are pretty lofty, and M&A is cyclical, so if a board is considering selling in the next five years, they are open to offers now,” said investment banker Ian Macdonell at Crosbie & Co. “Boards realize the competitive landscape is changing and it’s harder to be a regional player, in North America or globally, so if they can’t be consolidators, they are sellers.”

An Idea on ALA buyout/


In a report last month, analyst Robert Kwan pointed out management at AltaGas Corp., a utility with a $5.9-billion market capitalization, “is open to splitting up the company in the medium-term as a means to unlock shareholder value.” Mr. Kwan also said Gibson Energy Inc., a $3.2-billion infrastructure play, is home to “a management team and board that are focused on shareholder value creation, which could include selling the business.”

[rustyblades]

Personal opinion but I think any company with management that thinks the best way to unlock shareholder value is to sell the company, needs new management.

[GunnerG]

Randy Crawford, President and Chief Executive Officer with AltaGas. "In addition to unlocking substantial value within our portfolio and enhancing our financial strength, the sale of these assets further sharpens our focus on our Midstream and U.S. Utilities businesses, where we see numerous opportunities to drive strong, organic growth." This from when they sold NWBC hydro assets.

[rustyblades]

The sale of the BC hydro assets was a forced sale necessitated by the disasterous takeover of WGL. It wasn't done to unlock value but rather to save the company. The unlock value is just spin to cover up the incompetence of the previous management.

[GunnerG]

No different than you spinning it to suit your needs.  To save the company, get real.

[Capharnaum]

I think the idea would be to either sell one part if value isn't recognized by the market (is: Midstream worth $15, Utilities worth $20, Combined trades at $21). In that situaiton, selling Utilities for $20 would increase shareholder value, even if the Midstream portion trades at $12 afterwards. I think they are also open to spinning off the parts (so you'd have three stocks, Altagas

[rustyblades]

I'm OK with partial dispositions of assets that no longer fit the company's strategic focus. I was thinking more in line with selling the entire company. An example is the sale of Tim Hortons several years ago where there was no reason to sell the company. What concerns me at this juncture is a hostile take-over for a small premium by a venture fund that would then split up the company to

[bossu]

Cannot say that Randy and his team have make an outstanding job since he has been name as  CEO....and saying ALA needs  new managment is completely ''absurb''.