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Done Deal
NU, Con Ed agree to $3.29 billion merger
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10/18/1999
By: BNH
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As BNH went to press it appeared that rumored merger talks between Northeast Utilities and Consolidated Edison Inc. had borne fruit by the evening of October 12.
According to the New York Times, Con Ed directors agreed to pay $25 per share in cash and stock for outstanding NU shares, plus an additional $1 per share if Units 2 and 3 of NU Millstone nuclear power plant are also sold.
That package would total $3.29 billion. Con Ed, which has a base of three million customers, would raise that base to 4.7 million in the wake of the NU deal.
NU shares rose 12.5 cents in trading on the New York exchange October 12, closing at $21.25. That means the Con Ed deal represents a 17.6-percent premium for NU shareholders.
NU has posted large losses in recent years and was forced to suspend its dividend four years ago due to financial pressures caused by problems with its nuclear plants. Earlier NU announced that it planned to reinstate its dividend in December.
Under terms of the deal, according to the Times, Con Ed Chairman and CEO Eugene McGrath will hold those positions in the newly merged company, while NU President, Chairman and CEO Michael Morris will become president.
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