Quanta Hopes to Block UtiliCorp Takeover

Quanta Services Inc., which installs power and phone lines, plans to fight an attempt by UtiliCorp United Inc., its biggest shareholder, to take control of the company’s board.

UtiliCorp, the third-biggest U.S. utility owner, said Friday in a Securities and Exchange Commission filing that it would present nine nominees to the board at Quanta’s annual meeting. A date for the meeting hasn’t been set.

Quanta Chief Executive John Colson wrote in a letter over the weekend to UtiliCorp CEO Richard Green Jr. that his company will “vigorously oppose” the move.

UtiliCorp previously tried to add to its 38% stake, prompting Quanta to amend its shareholder agreement in November to block a takeover.

UtiliCorp, based in Kansas City, Mo., said in October that gaining control of Quanta would allow it to make accounting changes and benefit from the consolidation of the companies’ financial statements.

In the Friday filing, UtiliCorp said its board nominees, if elected, would take steps to boost Quanta’s share price. UtiliCorp also would consider selling or acquiring Houston-based Quanta, which has a market value of about $738 million.

Quanta shares have fallen 58% in the last year while UtiliCorp has dropped 24%. Quanta rose 50 cents to $12.15 on Friday. UtiliCorp rose 32 cents to $22.74, both on the New York Stock Exchange.

UtiliCorp said its decision to try to oust Quanta’s board was spurred in part by the line installer’s “disappointing financial performance.” Quanta’s earnings fell 88% to $2.4million in the fourth quarter. The utility owner reported a $6.2-million loss.