Report: Ameren, Canadian Funds Interested In Westar

According to a report by Bloomberg, Westar Energy Inc WR is a potential takeover target from rival Ameren Corp AEE and a consortium of investors, including Toronto-based Borealis Infrastructure Management and the Canada Pension Plan Investment Board.

Westar oversees more than 30,000 miles of electrical transmissions and 700,000 customers.

Bloomberg, citing "people familiar with the matter," noted that Westar is working with bankers to field interest in a sale and would begin evaluating bids next week. The publication added that Westar entertaining a sale for itself is consistent with recent heavy M&A activity within the utilities market.

Meanwhile, pension funds and infrastructure investors find utilities attractive given the stable and predictable returns.

Shares of Westar Energy surged to an intra-day of $52.82 – also corresponding to a 52-week high following the report. With less than two hours of trading remaining, the stock gave up most of the gains and were trading at $50.70, up 1.95 percent on the day.

Ameren's stock was also volatile following Bloomberg's report. The stock hit an intra-day of $51.00 – just six cents short of its 52-week high – and quickly gave up all of its gains. Shares were trading nearly flat for the day at $49.11 with less than two hours of trading.

Posted In: amerenBloombergBorealis Infrastructure ManagementCanada Pension Plan Investment BoardInfrastructure CompaniesInfrastructure M&AWestarNewsRumorsCommoditiesM&AMarketsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.