There is some new intrigue swirling around the Chester Water Authority.
Isn't there always these days?
And this time it's coming from a familiar source.
The last time I talked to Chris Franklin, the boss at water giant Aqua America Inc., he was paying me a visit to chat about the company and assure me that the firm was no longer interested in acquiring the iconic Chester company that provides water to 40 towns in Delaware and Chester counties.
The company had set off a firestorm a few years back when they made an unsolicited offer of $250 million to buy the firm.
Apparently the company has not changed its mind about acquiring Chester Water.
But they have noticed some of the intrigue and the deal cut between Chester Water Authority and the city of Chester that will allow the company to remain whole, instead of being broken apart or sold altogether to ease the city's fiscal woes.
The deal, which has been approved by the Chester Water Authority Board and is awaiting action by Chester City Council, would see the company kick in $60 million to the city coffers.
To raise the money, Chester Water Authority would raise rates on its customers by 10 percent.
That raised a few eyebrows over at Aqua, which was roundly castigated when it was seeking to buy Chester Water by people who feared a big spike in rates.
Franklin said Aqua might go to court to try to block the rate hike and the Chester Water Authority deal with the city. They would have standing as a Chester Water Authority customer. Franklin suggested Chester Water's suburban rate payers would be bankrolling the deal with the city.
That set off a lively debate on rate hikes and other matters between Franklin and Chester Water Authority Solicitor Frank Catania.
You can get all the details here.
Why do I get the feeling that Aqua would not mind putting the kibosh on this deal and then stepping in with another offer of their own?
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