By Jesse Berst

At first glance, you might expect slash-and-burn tactics, given that Melrose claims to target "under-performing engineering and manufacturing companies." But in a move that caught me by surprise, the firm -- which is already paying 49% more than Elster's closing price on June 11 -- said it would "have a look around" not for cuts, but to see what additional investments are needed. One focus, Melrose told Bloomberg Business week, will be to expand and improve Elster's factories. Another is to look for "bolt-on acquisitions."

Competition is already fierce in the smart meter wars. Sounds like it will ratchet up another notch now that Elster seems to have the money at hand to take a run at the top.

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.

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