Sprott Power Corp., which operates wind farms in Ontario and Nova Scotia, jumped 50 per cent in 2011. Sprott Power Corporation Technician Zack Fisher stands on top one of the fifteen new wind turbines which were officially opened in Amherst, Nova Scotia, June 25, 2012. REUTERS/Paul Darrow (CANADAENERGY - Tags: ENERGY BUSINESS TPX IMAGES OF THE DAY)PAUL DARROW/Reuters
Brookfield Renewable Energy Partners L.P. is trying to crank up the pressure on takeover target Western Wind Energy by revealing a long list of criticisms regarding the target's behaviour during the sale process, and is pressing regulators to remove potential hurdles to a fast close.
Brookfield sent an open letter to Western Wind's board Wednesday laying out its frustrations. For starters, Brookfield points to a statement by the head of Western Wind on Nov. 30 that the company would be willing to give Brookfield information that could help the suitor reassess whether it should raise its $2.50-a-share bid.
"If Western Wind provides us with access to the information provided to other potential buyers in the sales process, we may find information on Western Wind that supports our paying a higher price. Please let us know as soon as possible if you are willing to do so," the top manager for Brookfield, Richard Legault, wrote in the letter.
Brookfield points to the fact that Western Wind recently issued warrants to a lender at $2.50 a share, saying that is a signal that the company must not believe that price is "too low," and notes that some directors and officers sold shares at prices at or below $2.50. Brookfield also points to the lack of a fairness opinion from Western Wind's bankers, which Brookfield said was at odds with statements from Western Wind, and finally notes that there is no other offer even though Western Wind has been for sale for many months.
Given that the offer expires in three weeks, Brookfield said it is "concerned that you may try to delay completion of our offer by taking a position that our offer is not a permitted bid," which would allow Western Wind to throw up barriers using a poison pill. So Brookfield has gone to the British Columbia Securities Commission to confirm that the offer is a permitted one.