Newspaper Article Reports That City Of Nashua Plans To Make Offer To Buy Pennichuck
November 20 2006 - 1:03PM
Business Wire
Pennichuck Corporation today announced that the Nashua Telegraph
newspaper in its Saturday, November 18 edition reported that the
City of Nashua plans to make an �offer to buy the company� in an
apparent attempt to settle the ongoing eminent domain litigation
between the parties. The Telegraph reported that on Friday,
November 17 the City�s board of aldermen voted 10-4 to send the
City�s attorneys to a settlement conference today at the New
Hampshire Public Utilities Commission (the �PUC�) to present the
proposal. The article did not describe the price that the City
proposed to pay, the structure of the transaction including the
scope of the assets that the City would acquire, the manner in
which the City would finance the transaction, or any other terms.
The eminent domain litigation between the parties is scheduled for
trial before the PUC in January 2007. The Company has vigorously
opposed the efforts of the City to acquire its assets by eminent
domain and intends to continue to do so, although it has publicly
stated its desire to work with the City toward a fair and equitable
solution. Commenting on the article, Duane C. Montopoli,
Pennichuck�s President & Chief Executive Officer, said, �We
were unaware of this development until we saw the article in
Saturday�s paper. If the City makes a credible offer, the
Pennichuck board will of course consider it. Pennichuck is
skeptical, however, that any proposal that the City may make today
will lead to a mutually acceptable settlement, and we therefore
encourage our shareholders to be cautious in reacting to the
Telegraph article.� Pennichuck Corporation is a holding company
involved principally in the supply and distribution of potable
water in southern and central New Hampshire through its three
regulated water utilities. Its non-regulated, water-related
activities include operations and maintenance contracts with
municipalities and private entities in New Hampshire and
Massachusetts. The Company's real estate operations are involved in
the ownership, management and development of real estate in the
greater Nashua, New Hampshire areas. Pennichuck Corporation�s
common stock trades on the Nasdaq Stock Exchange under the symbol
�PNNW�. The Company�s website is at www.pennichuck.com. This news
release may contain certain forward-looking statements with respect
to the financial condition, results of operations and business of
Pennichuck Corporation. Forward-looking statements are based on
current information and expectations available to management at the
time the statements are made, and are subject to various factors,
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. These factors include, but are not limited to, timing
and results of eminent domain proceedings before the NHPUC, and the
impact thereof on consolidated business operations; timing and
amount of regulated water utility rate relief; changes in general
economic conditions, legislation or regulation and accounting
factors affecting Pennichuck Corporation�s financial condition and
results of operations; and, the impact of weather. Investors are
encouraged to access Pennichuck Corporation�s annual and quarterly
periodic reports filed with the Securities and Exchange Commission
for financial and business information regarding Pennichuck
Corporation, including a more detailed discussion of these and
other risks and uncertainties that could affect Pennichuck
Corporation�s forward-looking statements. Pennichuck Corporation
today announced that the Nashua Telegraph newspaper in its
Saturday, November 18 edition reported that the City of Nashua
plans to make an "offer to buy the company" in an apparent attempt
to settle the ongoing eminent domain litigation between the
parties. The Telegraph reported that on Friday, November 17 the
City's board of aldermen voted 10-4 to send the City's attorneys to
a settlement conference today at the New Hampshire Public Utilities
Commission (the "PUC") to present the proposal. The article did not
describe the price that the City proposed to pay, the structure of
the transaction including the scope of the assets that the City
would acquire, the manner in which the City would finance the
transaction, or any other terms. The eminent domain litigation
between the parties is scheduled for trial before the PUC in
January 2007. The Company has vigorously opposed the efforts of the
City to acquire its assets by eminent domain and intends to
continue to do so, although it has publicly stated its desire to
work with the City toward a fair and equitable solution. Commenting
on the article, Duane C. Montopoli, Pennichuck's President &
Chief Executive Officer, said, "We were unaware of this development
until we saw the article in Saturday's paper. If the City makes a
credible offer, the Pennichuck board will of course consider it.
Pennichuck is skeptical, however, that any proposal that the City
may make today will lead to a mutually acceptable settlement, and
we therefore encourage our shareholders to be cautious in reacting
to the Telegraph article." Pennichuck Corporation is a holding
company involved principally in the supply and distribution of
potable water in southern and central New Hampshire through its
three regulated water utilities. Its non-regulated, water-related
activities include operations and maintenance contracts with
municipalities and private entities in New Hampshire and
Massachusetts. The Company's real estate operations are involved in
the ownership, management and development of real estate in the
greater Nashua, New Hampshire areas. Pennichuck Corporation's
common stock trades on the Nasdaq Stock Exchange under the symbol
"PNNW". The Company's website is at www.pennichuck.com. This news
release may contain certain forward-looking statements with respect
to the financial condition, results of operations and business of
Pennichuck Corporation. Forward-looking statements are based on
current information and expectations available to management at the
time the statements are made, and are subject to various factors,
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. These factors include, but are not limited to, timing
and results of eminent domain proceedings before the NHPUC, and the
impact thereof on consolidated business operations; timing and
amount of regulated water utility rate relief; changes in general
economic conditions, legislation or regulation and accounting
factors affecting Pennichuck Corporation's financial condition and
results of operations; and, the impact of weather. Investors are
encouraged to access Pennichuck Corporation's annual and quarterly
periodic reports filed with the Securities and Exchange Commission
for financial and business information regarding Pennichuck
Corporation, including a more detailed discussion of these and
other risks and uncertainties that could affect Pennichuck
Corporation's forward-looking statements.
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