Pirate Capital asks shareholders to demonstrate opposition to Great Plains deal at annual meeting

By Lisa Kerner

Charlotte, N.C., April 23 - Aquila, Inc. investor Pirate Capital is offering buttons to all Aquila shareholders to wear at the annual meeting on May 2 in opposition to the company's proposed transaction with Great Plains Energy, Inc.

The investor's Web site, www.badaquiladeal.com, outlines what Pirate believes are the proposal's shortcomings.

Pirate said Aquila shares are worth "substantially in excess" of the merger consideration, according to a company news release.

The investor recommended that the company consummate the sale of its non-Missouri utility operations, deleverage to receive an investment-grade rating and form a holding company structure.

In February, Great Plains Energy and Black Hills Corp. said they would acquire portions of Aquila in two separate transactions.

Great Plains would acquire all the outstanding shares of Aquila and its Missouri-based electric utility assets for $1.80 in cash plus 0.0856 of a share of Great Plains Energy common stock for each share of Aquila common stock. The transaction, valued at $4.54 per share, or about $1.7 billion, includes the assumption of some $1 billion of Aquila's net debt.

Black Hills will acquire Aquila's electric utility in Colorado, its gas utilities in Colorado, Kansas, Nebraska and Iowa and its associated liabilities for $940 million in cash immediately prior to Great Plains Energy's acquisition of Aquila.

Great Plains Energy is a Kansas City, Mo., holding company for Kansas City Power & Light and Strategic Energy, LLC.

Black Hills is a diversified energy company based in Rapid City, S.D.

Based in Kansas City, Mo., Aquila owns electric power generation assets and operates electric and natural gas transmission and distribution networks.

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