SOURCE: Pennichuck Corporation

Pennichuck Corporation

February 13, 2009 10:07 ET

Pennichuck Corporation Retains Investment Banking Firm

Company Also Plans Conference Call to Discuss Q4 Results

MERRIMACK, NH--(Marketwire - February 13, 2009) - Pennichuck Corporation (NASDAQ: PNNW) today announced that it has engaged the investment banking firm of Boenning & Scattergood, Inc. (www.boenninginc.com) to advise it regarding a possible comprehensive settlement of its ongoing eminent domain dispute with the City of Nashua, New Hampshire. A settlement could involve Nashua's acquisition of some or all of the assets of Pennichuck or one or more of its subsidiaries or, alternatively, the shares of Pennichuck stock. On November 18, 2008, the City of Nashua announced that it was hiring an investment banking firm to assist it in exploring all possible ways that it might acquire Pennichuck Water Works by means other than eminent domain.

Commenting on this development, Duane C. Montopoli, Pennichuck's President and Chief Executive, said, "As previously publicly stated, we are open to engaging in settlement discussions with the City of Nashua aimed at resolving our dispute outside of eminent domain. Nevertheless, I must caution Pennichuck stakeholders that a comprehensive settlement would require the negotiation and resolution of many complex issues and, therefore, no assurance can be given that Nashua and Pennichuck would ultimately be able to reach a settlement agreement. Moreover, in addition to the approval of two-thirds of Nashua's Board of Aldermen, a definitive settlement agreement could also be subject to approval by the New Hampshire Public Utilities Commission and, depending on the terms of any settlement, Pennichuck shareholders."

Separately, Pennichuck announced that it plans to issue, after the market closes on March 11, 2009, a press release covering its financial results for the fourth quarter and full year ended December 31, 2008. The Company has scheduled a conference call for Thursday, March 12, 2009 at 10:00 a.m. EST at which time management will discuss the financial results and certain other matters.

Pennichuck Corporation is a holding company involved principally in the supply and distribution of potable water in New Hampshire through its three regulated water utilities. Its non-regulated, water-related activities include operations and maintenance contracts with municipalities and private entities in New Hampshire and Massachusetts. The Company's real estate operations are involved in the ownership, management and commercialization of real estate in southern New Hampshire.

Pennichuck Corporation's common stock trades on the Nasdaq Global Market under the symbol "PNNW." The Company's website is at www.pennichuck.com.

This news release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Pennichuck Corporation. Forward-looking statements are based on current information and expectations available to management at the time the statements are made, and are subject to various factors, risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, the timing and results of possible eminent domain settlement discussions with the City of Nashua, New Hampshire; the timing and results of a rehearing before the New Hampshire Public Utilities Commission regarding its eminent domain order (the "Eminent Domain Order") in favor of Nashua; the timing and results of a possible appeal to the New Hampshire Supreme Court regarding the Eminent Domain Order; the impact of an eminent domain taking by Nashua on business operations and net assets; legislation and/or regulation and accounting factors affecting Pennichuck Corporation's financial condition and results of operations; the availability and cost of capital, including the impact on our borrowing costs of changes in interest rates; and, the impact of weather. Investors are encouraged to access Pennichuck Corporation's annual and quarterly periodic reports filed with the Securities and Exchange Commission for financial and business information regarding Pennichuck Corporation, including a more detailed discussion of these and other risks and uncertainties that could affect Pennichuck Corporation's forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statement.

Contact Information

  • For More Information, Contact:
    Thomas C. Leonard
    Senior Vice President and Chief Financial Officer
    Phone: 603-913-2300
    Fax: 603-913-2305