NorthWestern Corp. buyout: Can the Montana cities pull it off?

Back in June, a group of cities called Montana Public Power Inc. offered to buy NorthWestern Corp. for $32.50 per share, about $2 billion.

NorthWestern board members responded with a unanimous and empathic "no thanks."

But, that doesn’t mean the South Dakota-based utility, which recently emerged from bankruptcy, won’t be sold whether company officials like it or not.

At least one powerful hedge fund, which bought a huge chunk of the distressed utility during bankruptcy reorganization, is seriously considering the cities’ offer. The New York City hedge fund Harbert Distressed Investment Master Fund has hired a pricey New York law firm and a group financial analysts to analyze the terms.

Harbert specializes in investing in financially strapped companies and now owns nearly 24 percent of North-Western. If Harbert decides to back the sale, other investment companies holding NorthWestern stock may jump in, gaining control of about half of NorthWestern’s 35.5 million shares.

Harbert and other top investors have declined to comment on the deal.

By JAN FALSTAD
Of The Gazette Staff

Full Story: http://www.billingsgazette.com/index.php?id=1&display=rednews/2005/09/05/build/state/25-nwc-buyout.inc

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A hard look at Montana’s bid for a public utility

Power play

by Jessie McQuillan

Stable and reliable are two words that haven’t been used to describe Montana’s power scene in nearly a decade. In an effort to turn that gloomy scenario around, five Montana cities recently banded together in a bid to buy out NorthWestern Energy. Though the company quickly rejected the $2 billion offer, Montana Public Power Incorporated (MPPI) has now taken the proposal to the company’s shareholders, and on Aug. 18, NorthWestern’s largest stockholder said it was seriously evaluating the bid.

The proposal is billed as an opportunity to repair past mistakes and ensure that Montana power customers fare better in the future. In those terms, few would argue that’s a bad idea. But some veteran players in Montana energy say that crucial aspects of the plan simply aren’t worked out, and they’re hesitant to move ahead until those issues are resolved.

Full Story: http://www.missoulanews.com/News/News.asp?no=5144

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Utility buyout potentially one of biggest in Montana

By CHARLES S. JOHNSON
Gazette State Bureau

HELENA- Five Montana cities are trying to buy NorthWestern Corp. in what would be a one of the largest utility deals in Montana history.

Here, in question-and-answer format, is a look at some of the details: http://www.billingsgazette.com/index.php?id=1&display=rednews/2005/09/05/build/state/50-buyout.inc

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Power struggle over power

By CHARLES S. JOHNSON – IR State Bureau – 9/05/05

5 Montana cities, including Helena, fight NorthWestern over state’s largest utility

HELENA — Behind the closed doors of Wall Street investment funds, a quiet, intense fight is being waged over the future of NorthWestern Corp., Montana’s largest electric and natural gas utility.

Meanwhile in Montana, a rival public relations battle, complete with dueling sales pitches, is playing out before elected officials and newspaper editorial boards over a proposal by five cities to buy and run NorthWestern as a public utility.

At stake is the reliability and the cost of power for Montana individuals and businesses years into the future.

Full Story: http://helenair.com/articles/2005/09/05/montana_top/a01090505_01.txt

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The pros and cons of power to the public
By CHARLES S. JOHNSON Missoulian State Bureau

Editor’s note: Today, the Missoulian begins a two-day look at the bid by five Montana cities to buy and run NorthWestern Corp. as a public utility. Coming Monday: A look at other communities that have public power.

HELENA – Behind the closed doors of Wall Street investment funds, a quiet but intense fight is being waged over the future of NorthWestern Corp., Montana’s largest electric and natural gas utility.
Meanwhile in Montana, a rival public relations battle, complete with dueling sales pitches, is playing out before elected officials and newspaper editorial boards over a proposal by five cities to buy and run NorthWestern as a public utility.

At stake is the reliability and the cost of power for Montana individuals and businesses years into the future.

Full Story: http://missoulian.com/articles/2005/09/04/news/mtregional/news08.txt

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More states anxious to buy utilities
By ROBERT STRUCKMAN of the Missoulian

Editor’s note: Today, the Missoulian concludes a two-day look at the bid by five Montana cities to buy and run NorthWestern Corp. as a public utility.

The cost per kilowatt of electricity in Troy, a town of 957 people, remained unchanged from January 2001 to July 2005.

A household using 750 kilowatts per month paid $40.85 to Troy Power and Light, which has been owned by the northwestern Montana city since 1987.
It is the state’s sole publicly owned utility.

Full Story: http://missoulian.com/articles/2005/09/05/news/local/news04.txt

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