In a week when the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rose an impressive 2.4% it's not surprising that some of the ASX's top blue chip stocks had good runs, but none came close to matching one of the best quality utility companies on the list.
What happened?
Shares in DUET Group (ASX: DUE) rose an impressive 19% over the week to a new 8-year high of $2.82.
Why?
Hong Kong-listed Cheung Kong Infrastructure Holdings Ltd made a $7.3 billion bid for the company, which owns and operates energy assets in Australia, the United States, the United Kingdom and Europe. Some of the most well-known assets include Victorian gas distribution company Multinet Gas Group Holdings and a 66% share of United Energy Distribution, also in Victoria.
What now?
Duet labelled the $3 per share offer as "an unsolicited, indicative, incomplete, non-binding and conditional proposal," implying that there may be a bit of detail to come before they're close to agreeing on a deal. For this reason the share price has remained below $3 since the offer was made.
The bid is the second attempt by an Asian investment company controlled by businessman Li Ka-shing to purchase a major Australian utility company after he had previously bid for Ausgrid.
Which company is the next target?
You can understand why Duet was a target for the successful businessman, it's generating a massive, reliable dividend, and has control over a number of significant energy generation and distribution assets that are unlikely to be disrupted any time soon. These are the types of companies that investors love to own and we strive to find each day.
