TA Withdraws Plan of Arrangement

TransAlta Corporation has announced:

that it is not proceeding with the previously announced transaction pursuant to which all the currently outstanding first preferred shares in the capital of the Corporation would be exchanged for shares in a single new series of cumulative redeemable minimum rate reset first preferred shares in the capital of the Corporation. In light of the decision to terminate such transaction, the special meetings of preferred shareholders of the Corporation scheduled for February 16, 2017 have been cancelled.

This is wonderful news – it was a horrible plan, at least so far as investors were concerned; it was only good for the company and bank employees hoping to earn sleaze fees for a favourable vote.

This follows previous posts on this topic:

• TA Proposes Sleazy Exchange Offer
• TransAlta plays the Grinch with its preferred share holders
• TransAlta Nudges TA.PR.D Offer; Hopes To Pay Sleaze Fees To Banks
• TransAlta pref shareholders not happy with consolidation plan
• TransAlta Corp takes to the airwaves to spread the advantages of its pref share consolidation

Affected issues are TA.PR.D, TA.PR.E, TA.PR.F, TA.PR.H and TA.PR.J.

There was high volume but little price change today after the announcement: