jerry
It is quite a large transaction, considering the size of CPX right now. But overall it looks good. CPX is also doing a stock issue to maintain balance sheet integrity with the deal. The acquisition of the two generating assets is immediately accretive to cash flow per share (17% to 19%). It gets it entry into a new market and diversifies the company's overall business nicely. They are solid assets in our view. The price seems OK. Investors will worry about the stock issue (at a discount) and the size of the deal, nearly half of CPX's market cap. But operationally and fundamentally we think it makes good sense.