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Author: mallardman49 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 117  
Subject: xel buyout Date: 9/6/2005 12:15 PM
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Mad Money Man says that xel is ripe for a takeover and recommends this stock. Anyone agree?
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Author: JoBeare Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115 of 117
Subject: Re: xel buyout Date: 9/10/2005 9:14 AM
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It's very possible. The company is relatively cheap when comparing price/book and price/revenues. If margins swing inline with the other electric utilities then it is cheap as far as a price to earnings.

On the other hand because of the nature of the business and regulatory hoops to jump through a merger or buyout is more unlikely than most business. Since XEL is the major electric utility for Minnesota and Colorado the state governments would probably try to block a takeover unless there were considerations for the states. I don't know about Colorado, but Minnesota legislature would go down fighting to the bitter end, since XEL is a valuable corporate asset to the Twin Cities. IMHO

jobeare

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