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To merge or to sell is the question for NorthWestern |
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Wednesday, 14 March 2007 |
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Page 1 of 2 Buck Traxler, I-O Editor
You say ‘toe-mah-toe’ and I say tomato, you say merge, I say sell. That is the fine line that Babcock & Brown Infrastructure (BBI) is portraying to the public in their bid to acquire NorthWestern Energy (NWE).
BBI likens the deal as coming together without abrupt change. The sale on the other hand is to give up to another for money, or other valuable considerations. Merger, sale, the proposed $2.2 billion purchase price still has to go through and be approved by the Public Service Commission (PSC). PSC members are holding pubic comment meetings, giving people a chance to comment on the possible acquisition.
 Ken Toole, Public Service Commissioner
Before turning the meeting over to representatives of NWE, BBI and the Montana Consumer Counsel (MCC), he gave about a 10-year timeline of Montana Power Company and events that led to NWE taking control from the defunct Touch America division to the bankruptcy of NWE. Toole recalled that PMC had lobbied for deregulation and sold off their generative facilities. NWE came in and bought MPC transmission and utility business. MPC assets were lost when its telecommunications company, Touch America, filed for bankruptcy.
He noted that state law provides the authority to approve sales. “The bottom line, this is a very big transaction with a lot of money on the table.”
Mike Schmit, representing NWE, commented, “We’re very committed to our customers. We’re committed to all our communities, including Conrad.”
In that vane, he said NWE had donated about $500,000 across their system, including $42,000 in Great Falls which includes Conrad.
Toby Beaglehole, a general manager of insurance and compliance, talked about BBI.
BBI is a global investment and advisory firm with longstanding capability in financed management of asset and cash flow-based investments.
Babcock and Brown was founded in San Frnacisco in 1977 but is now based out of Sydney, Australia with five operating divisions; real estate, infrastructure and project finance, operating leasing, structured finance and corporate finance.
They operate from 27 offices across Australia, North America, Europe, Asia, the United Emirates and Africa with over 1,000 employees.
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