Luminus scraps TransAlta bid

By NORVAL SCOTT Friday, October 10, 2008 Page B2 With files from reporter Andrew Willis in Toronto CALGARY -- A U.S. private equity group that has been in conflict with the management of TransAlta Corp. for almost a year has walked away from an attempt to take over Canada's largest independent power producer. The decision by Luminus Management LLC to scrap its $7.8-billion offer for TransAlta likely ends the prospect of a takeover of the Calgary-based utility, at least in the near term, given that the global financial crisis has dramatically reduced the availability of financing for potential bidders. As a result, TransAlta looks free to continue its long-term strategy of maintaining a strong balance sheet while it develops new power plants to replace its aging coal-fired generation capacity, industry observers said. "This... [read full story]