PPL Corp: Investors React Negatively After Acquisition

The shares of utility PPL Corporation (PPL), which I first wrote about on May 26, 2009 at a price of $32.15, have totally misbehaved, and it's probably best to stand-aside at this juncture, pending additional performance data in the quarter ahead. If you own the shares, I'd hold them, but I wouldn't add to a position at this time.



In late April, PPL Corp's shares fell significantly after it announced its purchase of Kentucky-based utilities Louisville Gas & Electric and Kentucky Utilities for $7.625 billion, contingent on approvals. The consensus is that the deal will be (at best) modestly dilutive for the first year, and PPL's shares fell about $4 on the news.

Continue reading PPL Corp: Investors React Negatively After Acquisition

PPL Corp: Investors React Negatively After Acquisition originally appeared on BloggingStocks on Thu, 13 May 2010 18:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Full story at http://www.pheedcontent.com/click.phdo?i=68392216d0cddda75346ac96c0394e97