TransAlta shareholder asks company to explore alternatives

By Angela McDaniels

Tacoma, Wash., July 22 - TransAlta Corp. shareholder Seneca Capital said it urges the board of directors to immediately review alternatives to maximize shareholder value, including an auction for the sale of the company, a strategic partnership or a restructuring of the company's long-term power contracts.

The request follows a proposal made by LS Power Equity Partners and Global Infrastructure Partners on July 21 to acquire the company for C$39 per share.

"We believe that the July 21st proposal and the continued disconnect between the company's share price and intrinsic value clearly demonstrate that the status quo is not a viable option," the shareholder said in a letter to the board included in a news release.

TransAlta is an electric energy company based in Calgary, Alta.

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