Calpine (CPN)

[Joe Stocks]

Harbinger Capital Raises Calpine Stake
February 14, 2008, 7:15 am Link to This
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Topics Hedge FundsIndustries Energy/Utilities
Could a sale be in the future for the California power company Calpine?

Less than a week after the company emerged from Chapter 11 protection, two of its three biggest shareholders, the hedge fund Harbinger Capital Partners and the private investment firm SPO Partners, have raised their stakes via open-market purchases.

Harbinger bought 1.07 million shares on Feb. 7 and Feb. 8, bringing its total stake to 20.6 percent, or 102.2 million shares. SPO bought an additional 1.66 million shares the same days, bringing its total stake to 13.6 percent or 60.8 million shares.

The Deal.com notes that Harbinger’s investment recalls its acquisition two years ago of a 20 percent stake in another utility, Northwestern Energy when it came out of bankruptcy. Harbinger then lobbied for a sale of the company.

But analysts said the moves don’t necessarily mean the hedge fund will repeat the same pattern.

Daniele Seitz, an analyst with Dahlman Rose & Company, told The Deal that it is not clear whether Harbinger and SPO will push for big changes. They may have added shares simply because they felt the stock was undervalued, she said.

Go to Article from The Deal.com »

http://dealbook.blogs.nytimes.com/2008/02/14/harbinger-capital-ups-calpine-stake/