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The $480 million takeout of SJW Corp. is all washed up thanks to merger-approval delays, and analysts do not expect another buyer stepping forward anytime soon for the water company, despite a huge amount of past interest.
On Feb. 23, American Water Works announced that it would terminate its acquisition of SJW because The California Public Utilities Commission (CPUC) would not have a decision on the companies's merger application until September. On the announcement, SJW's stock fell 23%, closing at $71.90. At press time, SJW's stock, which had been declining November, closed at $77.25. The deal, announced Oct. 28, 1999, valued SJW at $128-a-share cash.
Angela Yip, the chief financial officer of SJW, said the company will review its alternatives but did not provide details.
Tim Winter, an analyst with A.G. Edwards, said he didn't know...