Shareholders approve MAM merger
Maine & Maritimes Corp.'s plan to be acquired by the parent company of Bangor Hydro has taken a step forward.
The Presque Isle-based utility announced last week that 99% of its shareholders approved the merger with BHE Holdings Inc. of Bangor, a subsidiary of Nova Scotia-based Emera Inc., according to a press release. Emera is also the parent company of Bangor Hydro Electric Co. Maine & Maritimes in March first announced the merger, which still needs approval from the Maine Public Utilities Commission and the Federal Energy Regulatory Commission. Should it be approved, Emera would buy each outstanding share of MAM common stock for $45 in cash, for a total value of $108 million. The deal is expected to close before the end of the year.
However, shortly after the deal was announced, a New York City law firm said it was launching an investigation into whether it violates state law by breaching fiduciary duty to its stockholders. The firm questioned whether the board of directors "[failed] to adequately shop the company before entering into this transaction" and if the $45-per-share price is an underpayment. Another New York firm followed suit a few days later.
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