Breaking up may be hard to do
Article Abstract:
DQE Inc., parent company of Duquesne Light Co., holds that it owes Maryland-based Allegheny Energy Inc. nothing when it withdrew from their $4.3-billion stock-and-debt merger. The CFO of Allegheny, however, suggested that the cost of the withdrawal may even be more than the $50-million breakup fee stipulated in the merger agreement. The agreement provides that DQE may back out of the deal if it gets a better proposal, but it would pay Allegheny $50 million when it withdrew and another $50 million if the other proposal pushes through. DQE holds that the conditions imposed by the Public Utility Commission on the merger and the rejection of most of Allegheny's subsidy request amounted to 'material adverse effect,' a valid reason for withdrawal.
Comment:
Holds that DQE Inc owes it penalty money for withdrawing from their $4.3-billion stock-and-debt merger deal
Publication Name: Pittsburgh Post-Gazette (PA)
Subject: Business, regional
ISSN:
Year: 1998
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High prices put on GPU plants heartening to DQE
Article Abstract:
Duquesne Light Co.'s chances of being able to sell its power plants at a premium increased with the recent success of GPU Inc. in selling its coal- and fossil fuel-powered electric generating plants higher than their book value. Stranded costs amounting to $1.33 billion that the company is allowed to collect from its customers over the next seven years will be reduced should Duquesne is able to sell its power plants at a premium. Analysts, however, are less optimistic regarding Duquesne's chances of selling the facilities in the desired price range.
Comment:
Chances of selling its power plants at a premium increased with the recent success of GPU Inc in doing the same
Publication Name: Pittsburgh Post-Gazette (PA)
Subject: Business, regional
ISSN:
Year: 1998
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