Utility company's shares rise .07 percent on confirmation it is evaluating possible sale.
Cleco's Pineville headquarters
Cleco Corporation (NYSE: CNL) shares closed up .07 percent Monday after the company announced that it has received indications of interest from third parties about a possible "strategic transaction" (read: merger/buyout). Shares of Cleco closed at $57.60 on Friday and jumped as high as $59 Monday, closing at $58.02.
In a press release, the Pineville-based utility company says it has not established a definitive timeline to complete the review and offered no assurance that the review would result in a merger or business combination, or a path different from its current strategic plan.
The company says it will offer no further announcements on the review unless the board has approved a specific transaction or other course of action requiring disclosure.
Cleco has retained Goldman Sachs & Co. and Tudor, Pickering, Holt & Co. as its financial advisers, and Locke Lord LLP as its legal adviser, to assist its board in reviewing and evaluating any proposals and comparing any such proposals to Cleco's standalone strategic plan. The independent members of Cleco's board have also retained Hunton & Williams LLP as legal counsel.
In business since 1935, Cleco has approximately 1,200 employees and 284,000 customers in Louisiana.