RE:RE:RE:RE:RBC -Reduces PT to $8.00 from $9.00 (USD)Nordico wrote: I'm hoping they'll sell the entire company for $14 CAD.
MS12345 wrote: Incompentance at it's finest. Along with the clown of the CEO, the whole senior executive and board needs to be thrown out.
Given any buyer of the entire company would have to assume all AQN debt, I highly doubt any entity would be willing to pay anywhere close to 14.00 CAD.
The way I see it, AQN is caught between a rock and a hard place. They (literally) cannot afford to lose their investment-grade credit rating - otherwise the debt problem becomes even more serious as their creditors will jack rates up even higher upon debt renewals. AQN's solution (with pressure from Starboard) is to sell their Renewables business (which can be volatile), pay off debt with some/most/all of the proceeds, and become a low-risk pure utility play. Fly in the ointment is Starboard likely thought the Renewable Energy business was worth much more than it actually is at this point in time (the old "unlocking value" argument), so the choice may be either sell the Renewables for what the market will currently bear or risk having AQN's credit rating downgraded. TRP recently sold assets for less than the market thought they were worth so they could continue pouring money into their Coastal GasLink money pit.