California Water Boosts Bid for Dominguez

California Water Service Group, California’s largest publicly traded water utility, said it raised its offer for Long Beach-based Dominguez Services Corp. to about $63.5 million in stock and assumed debt to top a rival bid by American States Water Co. The offer of $33.75 a share comes a week after American States made an unsolicited bid of $32.50 a share. California Water agreed to buy Long Beach-based Dominguez in November for about $58.1 million to expand its water business and cut costs by consolidating two Los Angeles-area systems. The company planned to exchange stock valuing Dominguez at $31.57 a share and take on $10.5 million in debt. Under the revised agreement, Dominguez shareholders could convert each share into 1.25 to 1.49 California Water shares, up from 1.18 shares. San Dimas-based American States has offered to exchange 1.11 to 1.35 shares for each Dominguez share. American States also has agreed to cover $2.7 million in break-up fees Dominguez would have to pay if it backs out of its agreement with San Jose-based California Water. Dominguez shares rose 75 cents to close at $29.25 on Nasdaq. California Water closed unchanged at $24.44, and American States also closed unchanged, at $24.69, both on the New York Stock Exchange.