Lawyer: Cost of Mountain Water Co. acquisition hinges on fair value for utility
“Missoula Mayor John Engen wants to acquire Mountain Water Co., even if it means a takeover by eminent domain.
But whether the city can win the potential legal battles appears to depend on whether it’s willing to pay enough for the utility to avoid them.
Tom Orr, a lawyer who successfully fought the city in an eminent domain case, said if Missoula wants to own its water system, it must pull together an A-team of specialists who have the chops to place a fair value on the utility.
The city must make a strong offer right out of the gate, he said.
“The benefit of the doubt goes to offering more rather than less,” Orr said. “I don’t think that’s a widely held viewpoint, but I just don’t think this is where you try to do a low-ball (offer).”
The mayor announced this week he would like to begin negotiations to purchase Mountain Water from the Carlyle Group, a global asset management firm, and he’s mentioned $50 million as a rough estimate of the worth of the system.”
Szpaller, Keila. Ravalli Republic 26 September 2013.