TransAlta extends renewable energy firm bid a 3rd time

Power producer TransAlta Corp. has extended its bid for Canadian Hydro Developers Inc. for a third time, to Oct. 2, the company said Monday.

Canadian Hydro rejected the $4.55-per-share offer as too low when it was first made on July 22 and set up a poison pill defence. A poison pill allows existing shareowners to buy more shares at a below-market price, increasing the total number of shares and forcing the acquiring company to pay a much higher price. 

Canadian Hydro's defence was due to expire on Monday.

TransAlta's bid values Canadian Hydro at $654 million. TransAlta operates 50 power plants in Canada, the U.S., and Australia, many of them coal-fired, which the company has conceded in the past past could require it to find ways to offset penalties under climate change legislation. Both companies are based in Calgary.

"We continue to believe our offer provides Canadian Hydro shareholders with significant, immediate and certain value for the company's existing assets as well as its future growth potential," TransAlta CEO Steve Snyder said in a release. 

TransAlta has not changed the terms of its bid.