UIL Holdings Corporation
Robbins Arroyo LLP: Acquisition of UIL Holdings Corporation (UIL) by Iberdrola USA May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP isinvestigating the proposed acquisition of UIL Holdings (NYSE: UIL) by Iberdrola USA. On February 25, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Iberdrola will acquire UIL Holdings to create a newly listed U.S. publicly traded company. Under the terms of the agreement, UIL Holdings shareholders will receive a combination of cash and stock equivalent to $52.75 for each share of UIL Holdings common stock.
Is the Proposed Acquisition Best for UIL Holdings and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at UIL Holdings is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On February 25, 2015, UIL Holdings reported strong quarterly earnings its fourth quarter 2014. In particular, the company’s electric distribution business earned $51.6 million, or $0.90, per diluted share in 2014, compared to $46.7 million, or $0.88, per diluted share in 2013. Additionally, the company’s gas distribution business earned $48.3 million, compared to $45.4 million in 2013. And, UIL Holdings’s electric transmission business earned $9.7 million, or $0.17, per diluted share compared to $8.9 million, or $0.16, per diluted share for the same period in 2013. In commenting on these results, UIL Holdings’s President and Chief Executive Officer James P. Torgerson remarked, “We reported improved financial performance, excluding non-recurring items, at all of our operating companies in 2014. We continue to execute on our strategy of converting customers to natural gas heat and exceeded our 2014 goal of 16,000 conversions, adding 16,266 households and businesses…Our 2015 target is to convert at least 12,000 households and businesses to natural gas.”
In light of these facts, Robbins Arroyo LLP is examining UIL Holdings board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
UIL Holdings shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
UIL Holdings shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.