Calpine agrees to be acquired for $5.6bn in cash
(ShareCast News) - Shares of Calpine Corporation surged after news broke that the American power generation company had agreed to be acquired by a consortium led by Energy Capital Partners.
The private equity firm and a consortium of buyers, including Access Industries and Canada Pension Plan Investment Board, were to pay $5.6bn in cash or $15.25 a share.
The transaction price equated to a 51% premium on the shares' price on 9 May, the day before the media began speculating on a possible deal.
Including debt, the transaction valued the largest generator of electricity from natural gas and geothermal energy in the US at approximately $17bn.
Calpine provided power to as many as 6.5m residential customers across the country.
As of 1451 BST, the shares were higher by 9.41% to $14.76.