Is Ormat in Play?
Written by: Aaron Katsman | October 17, 2007
Aaron Katsman
www.IsraelNewsletter.com
Ormat(ORA), a company that engages in the geothermal and recovered energy power business, continues its’ recent surge amid conflicting takeover rumors. Early in the day rumors had the Apax fund paying $2.25 billion for the company. Both parties strongly denied these rumors. Then the next rumor hit, that none other than Goldman Sachs(GS), was looking at buying a 10% share of the company. Interestingly enough, ‘no comment’, was the response of choice. Sounds like we have a winner! Though it’s important to note that Merrill Lynch(MER) came out with a note that they think nothing is going to happen. The fact that we had no denials from either side, sure sounds like something is going on. The shares of Ormat have been flying, surging 25% over the last 2 months. I had posted in late June about a possible takeover and since then the stock is up over 43%.
With crude prices over $87, strong interest continues in alternative energy and I would expect consolidation in the sector. I think that Ormat is an interesting target, and wouldn’t be surprised to hear a deal announced in the not to distant future.
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Disclosure: Author has a position in ORA as of 10/17/07. Author has no holdings in any other stock mentioned.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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