Nearest Resistance: $27.25
Nearest Support: $23
Pepco Holdings (POM) is up more than 17% this afternoon, following news that Exelon (EXC) was planning to buy the regulated utility for $27.25 per share in cash. That offer price leaves a small 1.9% premium left in shares as I write this afternoon, a reflection of investors' high conviction that the deal will get done.
Pepco has been one of the biggest beneficiaries of the flight to yield that's rewarded dividend-paying regulated utilities in 2014, and shares have been going parabolic in the last couple of months as a result. But with the acquisition plans public, the money has already been made in the POM deal. It's best to sit on the sidelines at this point.
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