Opponents Of The AES Deal Are Fighting The Wrong Battle
Activist groups opposing the pending deal between AES and GIP are arguing against a set of fact that don't really exist.
The Private Equity Stakeholder Project (PESP) has launched a petition to block the $33.4 billion acquisition of AES Corporation by Global Infrastructure Partners and EQT, arguing that it is a hostile takeover threatening customers. However, the article suggests that this "horror scenario" is unfounded for this specific deal. AES required substantial capital for infrastructure expansion, which the acquisition provides without new debt or ratepayer cost transfers.
The deal is framed as crucial for grid modernization and reliable power for 1.1 million Indiana and Ohio customers, rather than predation. The article highlights that AES, Board Chairman Jay Morse, and shareholders all endorse the deal, and the actual structure of the deal shows that the consortium is funding the entire purchase price with equity.
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