• Twitter
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Executive Summary

Top Companies Still the Best Takeover Bets

By Roger S. Conrad on May. 2, 2014

This year is shaping up as a big one for utility mergers. The market value of companies in our Utility Report Card that have announced deals has already reached $237 billion. And Berkshire Hathaway (NYSE: BRK.A, BRK.B) has yet to pull the trigger. (See Buffett Still Eyeing Utilities.)

Thus far, a handful of giants account for virtually all the volume. That includes Aggressive Income Portfolio holding Exelon Corp’s (NYSE: EXC) all-cash bid for Pepco Holdings (NYSE: POM).

The new company immediately gains major synergies in the Mid-Atlantic region, providing financial support for its nuclear power plants in wholesale markets.

I never speculate on takeover stocks that can’t make it on their own–a bias that held me out of Pepco this year. But in the long run, Exelon shareholders will benefit the most from this deal, thanks to a low purchase price and numerous opportunities to upgrade underperforming regulated assets.

As for finding strong companies with takeover appeal, the key is business performance. 

Conrad's Utility Investor

Invest Smarter! Join Conrad’s Utility Investor!

What sets renowned income-investing expert Roger Conrad apart from the pretenders? His more than two decades of covering utility stocks and essential services—a wealth of knowledge and experience that you can’t find anywhere else.   

Smart investing. Taking advantage of real opportunities and not fads (and knowing the difference). Finding the companies and stocks that will deliver for the long haul, so investing lets you live instead of investing turning into your life. Roger Conrad has dedicated his career to these principles—and that’s what Conrad's Utility Investor delivers.

Subscribe today for instant access to a treasure trove of investment insight and knowledge, as well as Roger’s exclusive model Portfolios and ratings of more than 200 essential services.



Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b