Some doubt in the market about Iberdrola deal

Energy East is supposed to be bought out by Spanish-based Iberdrola at $28.50 a share at the end of the second quarter. But the markets are not so sure.

Last week, when there were revelations about the increased possibility of Iberdrola itself being a takeover target (see blog entry below) and the failure of Energy East and New York regulators to come to terms on the perceived consumer benefits of the merger, the stock took a dive.

Now Energy East is trading in the $25.50 range , 15 percent below the proposed Iberdrola acquisition price.

That clearly indicates that there is genuine doubt that the merger will take place either at all, or within the time frame originally proposed. It is much more likely the former reason.