Westinghouse Solar Inc., a U.S. solar company, fell the most in more than four months after agreeing to be acquired by the Australian developer CBD Energy Ltd.
Westinghouse dropped 18 percent to 33 cents at the close in New York, the biggest decline since Dec. 27. The company has a market value of $5.5 million, according to data compiled by Bloomberg.
Westinghouse investors will receive 3.7 CBD shares for each common share of the Campbell, California-based solar company they own, according to a statement today. Preferred shareholders will receive preferred CBD shares that may be converted to common stock.
CBD, based in Double Bay, New South Wales, is seeking access to the U.S. solar market. The company initially announced its plans to buy Westinghouse in February.
Fully converted, Westinghouse shareholders will own about 15 percent of the combined company when the sale is completed in the third quarter.
Westinghouse Chief Financial Officer Margaret Randazzo will become interim chief executive officer of the combined company. Barry Cinnamon, founder and CEO of Westinghouse, plans to leave the company.