RE:RE:RE:RE:CEO mrbb wrote: I consider playing hardball with IPL and failing to acquire IPL is a miss step for PPL. The 350 million break fee isn't a win for PPL in my book but rather a lost opportunity of accretive value creation much greater than 350 million by letting IPL go. I'm sure BIPC would want more than $350M premium for any piece of IPL that PPL is interested. This is not a way to buy thing, especially from BIPC.
In PPL press release, near term synergy amount 150-200M is assured, and up to 6B+ in investment synergy. Assuming a small 10% ROR on future investment, that's additional 600M per year in future synergy return. All forfeited for a measly one time 350M payout. This is not visionary for a CEO.
Agreed, you let someone get in the game that shouldn't be playing. This isn't Brookfield's sector and bravo for them getting in, but Pembina should have bid them out or atleast more up. Our hardline ment we lost and added competition to ourselves, yea we got some free money, but that's a one time payment, where as assets in IPL would be adding to our balance sheet and paying itself off long term. If Brookfield lost that they would go else where, Brookfield bought options for themselves, they can always spin this off and become a player if they reassess and see major upside. This wasn't buying someone's oven because they were going outta buisness, they bought a full running bakery to compete across the road with us the grocery store.
We/the market may not have liked the leverage we would have had to assume to swallow this, but the options, scale and cash flow we would have gained would even out the scales for those with bigger visions. And the market hasn't exactly rewarded us for losing and not leveraging up either. This didn't seem like a time we should have been keeping our purse strings so tight...