Talks break down between Western Wind, Brookfield
Deal talks have broken down between Vancouver-based Western Wind Energy Corp. (TSX-V:WND) and Bermuda-based Brookfield Renewable Energy Partners L.P. (TSX:BEP.UN), the companies have announced.
In a news release issued yesterday, Brookfield said it had terminated "all present or future discussions" regarding an alternative transaction to its all-cash offer to acquire Western Wind shares for $2.50 per share.
The bidder further criticized Western Wind's news release of January 22 for "[raising] shareholder expectations that a revised proposal will be made, despite there being no agreement or understanding between the parties regarding a proposal or its terms."
Western Wind's January 22 news release advised shareholders to reject Brookfield's current offer and hinted that a better deal was coming.
Brookfield wrote in its January 24 response that it had been looking to working with the board of Western Wind toward a board-supported transaction.
"Unfortunately," Brookfield wrote, "based on Western Wind's conduct since the commencement of the offer it appears that Western Wind, and in particular, its CEO, has no intention of selling the company."
Brookfield reiterated that its offer expires January 28.
As of press time, Western Wind stock was trading at $2.41.
In September, Western Wind management won a proxy battle against investment fund manager Savitr Capital LLC.