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Fortis Plunges by Record on $6.9 Billion Bid to Buy ITC

  • Offer represented a 14% premium to Monday's closing price
  • Fortis follows other power companies seeking better growth
Updated on

Fortis Inc. agreed to buy ITC Holdings Corp. for $6.9 billion in cash and stock, in what will be the largest Canadian takeover of a U.S. utility. Its shares fell the most in more than 28 years, and ITC also declined.

Fortis, Canada’s largest utility owner, will pay the equivalent of $44.90 for each ITC share, according to a statement Tuesday. That’s a 14 percent premium to Monday’s close, and a 33 percent premium to the close on Nov. 27, before Bloomberg reported that ITC was exploring a sale. The offer, which totals $11.3 billion including assumed debt, will comprise $22.57 in cash and 0.752 Fortis shares apiece.