NORWALK, Conn., Feb. 9, 2007 (PRIME NEWSWIRE) -- NEWS RELEASE
Pirate Capital Comments on Proposed Aquila, Inc. Transaction
NORWALK, Conn., February 9, 2007 (PRIMEZONE) -- Pirate Capital LLC, the beneficial owner of approximately 17.6 million shares of common stock in Aquila, Inc., has expressed its opposition to the company's proposed deal with Great Plains Energy and Black Hills Corp. In a letter to Chairman, President, and Chief Executive Officer of Aquila, Inc., Richard Green, Pirate Capital's Portfolio Manager, Thomas R. Hudson Jr., wrote the following:
Dear Mr. Green,
Pirate Capital LLC, as the investment advisor to Jolly Roger Fund
LP, Jolly Roger Offshore Fund LTD, Jolly Roger Activist Fund LP and Jolly
Roger Activist Fund LTD. is the beneficial owner of approximately 17.6
million shares of the common stock of Aquila, Inc ("ILA" or the
"Company"). As we have previously stated, we are extremely dissatisfied
that the deal with Great Plains Energy and Black Hills Corporation was
accepted by management, and cannot believe that such despicable
terms for ILA shareholders were even entertained.
While we have heard repeatedly that this deal is favorable for
ratepayers and ILA customers, we must remind you that your allegiance
should reside with ILA shareholders. It is shocking that you would
expect ILA shareholders to suffer additional losses while you and
your cohorts receive hearty severance packages. We will not
complacently sit by and allow the further deterioration of ILA shares,
and we demand that the current deal be nullified immediately. Either
both Great Plains Energy and Black Hills Corporation present a more
enticing acquisition offer for ILA shareholders to consider, or the
Company must continue to operate as a stand alone entity.
We remind you, and the entire Board, of your duty and responsibility
to act in the best interest of ILA shareholders. As the Company has
already lost hundreds of millions of dollars under your watch, this
outrageous deal, which destroys shareholder value and triggers
sizeable severance packages, causes us to question your ability as a
manager and your commitment to ILA shareholders. As you are well
aware, we have had numerous conversations with other institutional
ILA investors and not a single shareholder we have spoken with
supports this deal under the current terms. We strongly urge you to
nullify the deal immediately, reevaluate your commitment to ILA
shareholders, and either resign from the Company or get back to the
drawing board to negotiate a better deal.
Sincerely,
/s/ Thomas R. Hudson Jr.
Thomas R. Hudson Jr.
Portfolio Manager
About Pirate Capital
Pirate Capital serves as the investment advisor to four event-driven hedge funds: Jolly Roger Fund LP, Jolly Roger Offshore Fund LTD, Jolly Roger Activist Fund LP and Jolly Roger Activist Fund LTD. Assets under management by Pirate are in excess of $1.0 billion. Pirate Capital is registered with the Securities and Exchange Commission as an investment advisor under the Investment Advisers Act of 1940.