Gabelli: CH Energy to be Acquired by Fortis

According to a research report released today by Gabelli, CH Energy Group (NYSE: CHG) announced yesterday that it will be acquired by Fortis Inc. (TSE: FTS) for $65 per share.

“The transaction is expected to close in the first quarter of 2013 upon approval from CHG shareholders, the New York Public Service Commission (NYPSC) and FERC as well as other minor approvals. Given that FTS intends to keep the Central Hudson utility headquarters in Poughkeepsie, NY, retain non-executive employees and guarantee various corporate citizenship initiatives, we expect the acquisition to be approved,” Gabelli noted in the report.

Gabelli maintains its Hold rating and $66 PMV on CH Energy, which closed yesterday at $66.22.