- - Monday, May 30, 2011


Government rules out second bailout, to test market

DUBLIN — Ireland’s government moved Monday to quash speculation that it would be forced to seek a second EU-IMF bailout and said it would make a tentative return to international debt markets in the final quarter of next year.

Dublin is trying to distance itself from the woes of eurozone struggler Greece, which is trying to avoid a potentially devastating default and seems certain to require a second bailout to plug a looming funding gap.

Finance Minister Michael Noonan categorically ruled out Dublin requiring a top-up to its 85 billion-euro rescue package, seeking to limit the fallout from a cabinet colleague’s warning over the weekend that another bailout may be needed.

Mr. Noonan said Dublin would test market sentiment for Irish debt in the final quarter of 2012 after a two-year hiatus.


Canadian utility to buy a U.S. power company

The Canadian utility Fortis Inc. said Monday that it will purchase electricity distributor Central Vermont Public Service Corp. for about $470 million to get a foothold in the U.S. energy market.

Fortis will pay $35.10 per share in cash for CVPS. That represents a premium of $10.78, or about 44 percent, to the closing price of CVPS shares Friday. Fortis also will assume the utility’s debt of $230 million.

CVPS shareholders and regulatory agencies still have to approve the deal, which should happen in six to 12 months, Fortis said.

Fortis said it expects to grow in the U.S. and the purchase would add to earnings within the first year.

CVPS provides electricity to two-thirds of the cities and towns in Vermont. It will keep its headquarters in Rutland and act as an autonomous business following the acquisition, Fortis said.

Fortis provides gas and electricity to roughly 2.1 million customers in Canada. It said it is the country’s largest investor-owned distribution utility and had total revenue in the past fiscal year of about $3.7 billion.


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