FirstEnergy and Allegheny Energy Ink $8 Bil Deal
FirstEnergy and Allegheny Energy announced that both companies' boards of directors have unanimously approved a definitive agreement in which the companies would combine in a stock-for-stock transaction. Under the terms of the agreement, Allegheny shareholders would receive 0.667 shares of FirstEnergy common stock in exchange for each share of Allegheny they own. Based on the closing stock prices for both companies on February
10, 2010, Allegheny shareholders would receive a value of $27.65 per share, or $4.7 billion in the aggregate. FirstEnergy will also assume approximately $3.8 billion in Allegheny net debt. The price per share represents a premium of 31.6 percent to the closing stock price of Allegheny on February 10, 2010, and a 22.3 percent premium to the average stock price of Allegheny over the last 60 days ending February 10, 2010. Following the completion of the merger, it is anticipated that FirstEnergy shareholders would own approximately 73 percent and Allegheny shareholders would own
approximately 27 percent of the combined company.
The transaction is anticipated to be accretive to FirstEnergy earnings in the first year following the close. The companies expect to complete the transaction within 12-14 months. The combination creates a leading regional energy provider with approximately $16 billion in annual revenues and $1.4 billion in annual net income.
Con Edison Profits Jump 85 Percent
Consolidated Edison Monday said it posted third-quarter earnings of $336 million, or $1.22 a share, up from $269 million, or 98 cents a share in the year-ago period.
Wall Street analysts expect earnings of $3.11 a share.
Duke Energy Q3 Earnings Fall
Duke Energy said Friday third-quarter net income fell to $109 million, or 8 cents a share, from $215 million, or 17 cents a share in the year-ago period. Third-quarter adjusted earnings totaled 40 cents a share. Revenue fell to $3.4 billion from $3.5 billion.
AEP Earnings Up, Revenues Down
American Electric Power today reported 2009 third-quarter earnings of $443 million, or $0.93 per share, compared with $374 million, or $0.93 per share, for third-quarter 2008. Revenue dropped 16% to $3.5 billion as cool summer weather and the ongoing recession weighed on sales.
Company CEO said company's sales to industrial customers in the third quarter were down 17 percent from a year ago, a slight improvement from second quarter, when industrial sales were down 20 percent.
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|Progress Energy Reports 2009 EPS of $2.75 vs $3.17 (PGN)|
|FirstEnergy and Allegheny Energy Ink $8 Bil Deal (FE)|
|AES Announces Acquisition (AES)|
|Con Edison Profits Jump 85 Percent (ED)|
|Duke Energy Q3 Earnings Fall (DUK)|
|AEP Earnings Up, Revenues Down (AEP)|