Why Avista Corporation Stock Just Jumped 21%

Why Avista Corporation Stock Just Jumped 21%

Shares of Spokane, Washington-based electric and natural gas utility Avista Corporation (NYSE: AVA) stock are up 20.7% as of 3:05 p.m. EDT.

Hydro One, the largest power transmitter in Ontario, Canada, announced after close of trading yesterday that it will be acquiring Avista Corporation for $53 per share in cash, or $5.3 billion in all. The buyout price is said to represent a 24% premium over Avista's share price as of market close on July 18.

Hydro One noted that the combination of the two companies will create "one of North America's largest regulated utilities with over ... US$25.4 billion in assets."

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Source: Fool.com