Analyst says Spokane-based utility remains takeover target

avista

Avista Corporation remains a likely takeover target, even though the utility’s plan to be purchased by a Canadian company is apparently dead.

A financial analyst told the Spokesman-Review Thursday that Spokane-based Avista probably won’t remain a stand-alone company. The analyst for Guggenheim Securities also says Avista should not appeal the state’s decision to squash its sale to Toronto-based Hydro One for $5.3 billion.

The Washington Utilities and Transportation Commission shut down the sale on Wednesday by withholding its approval. Commissioners said the deal was too risky because of the province of Ontario’s interference in Hydro One’s affairs for political reasons. Ontario holds a 47 percent ownership stake in hydro One.

The proposed sale failed the state’s requirement for leaving Avista’s customers’ better off.

The sale hinged on the approval of all five states in which Avista operates. Alska and Montana regulators backed the sale, while decision had not yet been made in Idaho or Oregon.

Avista ranks 46th out of 50 publicly traded utilities in the U.S. in size. (AP)

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