Aug 18, 2017

Electricity giant Calpine to be acquired

AP Photo/Paul Sakuma

Energy Capital Partners has agreed to acquire Houston-based power generation giant Calpine for $5.6 billion, or $17 billion including debt. The deal comes with a 45-day "go-shop" provision and works out to $15.25 per share, which represents a 51% premium to price before first media reports of a possible transaction. Also participating on the buy-side are Access Industries and Canada Pension Plan Investment Board.

Why it matters: Calpine claims to be the country's largest producers of electricity from natural gas and geothermal energy, and one of its largest electricity retailers. But it's also gotten hammered by low natural gas prices and competition from renewables, which helped cause a $29 million net loss in Q2 2016 to balloon to a $219 million net loss in Q2 2017.

Data point: Global energy and power M&A is up 28% over year-to-date figures for 2016, per Thomson Reuters.

Bottom line: Deals are not yet done in this sector, nor even deals involving Energy Capital Partners. The New Jersey-based private equity firm is the largest outside holder in Calpine rival Dynegy, which reportedly received a takeover offer from Vistra.

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Coronavirus dashboard

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  1. Global: Total confirmed cases as of 8:30 p.m. ET: 1,197,405 — Total deaths: 64,606 — Total recoveries: 246,152Map.
  2. U.S.: Total confirmed cases as of 8:30 p.m. ET: 308,850 — Total deaths: 8,407 — Total recoveries: 14,652Map.
  3. Public health latest: CDC launches national trackers and recommends face coverings in public. Federal government will cover costs of COVID-19 treatment for uninsured. The virus is hitting poor, minority communities harder and upending childbirth.
  4. 2020 latest: "We have no contingency plan," Trump said on the 2020 Republican National Convention. "We're having the convention at the end of August."
  5. Business updates: Restaurants step up for health care workers. Employees are pressuring companies to provide protections during coronavirus.
  6. Oil latest: Monday meeting among oil-producing countries to discuss supply curbs is reportedly being delayed amid tensions between Saudi Arabia and Russia.
  7. Education update: Many college-age students won't get coronavirus relief checks.
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U.S. coronavirus updates: Death toll surpasses 8,200, case count tops 300,000

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

Recorded deaths from the coronavirus surpassed 8,100 in the U.S. on Saturday, per Johns Hopkins data. The death toll in the U.S. has risen over 1,000 every day for the past four days, since April 1.

The big picture: Trump said Saturday that America's "toughest week" is ahead. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said the country should expect to see deaths continue to increase in the next week.

Go deeperArrowUpdated 3 hours ago - Health

World coronavirus updates: Spain tracks more cases than Italy

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

Spain overtook Italy in its number of coronavirus cases on Saturday. The global death toll has surpassed 62,000, per Johns Hopkins data.

The latest: About half the planet's population is on lockdown amid the coronavirus crisis. Fatalities are exponentially increasing across Europe, with roughly half of deaths worldwide located in Italy and Spain.

Go deeperArrowUpdated 7 hours ago - Health