U.S. utility, PowerGen end merger talks

Article Abstract:

PowerGen PLC, a UK-based company, and Houston Industries Inc. have ended merger negotiations due to disagreements over how both companies would be valued and amid regulatory concerns in both UK and US. The fast rate of utility deregulation in the US prompted PowerGen to diligently study any potential US transaction. Aside from this, UK regulators have concerns about the size of the UK-based utility. PowerGen refused to comment on the termination of the talks, but a spokeswoman said the utility will continue to consider opportunities in the US.

Comment:

Ends merger negotiations with PowerGen PLC due to disagreements over how both cos would be valued

United States, Acquisitions & mergers, Electric Utilities, Electric Power Generation, Transmission and Distribution, CenterPoint Energy Inc.

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PowerGen to sell 2 plants to avoid antitrust study

Article Abstract:

PowerGen PLC has decided to sell its two generating facilities in order to step away from a possible antitrust investigation. PowerGen's decision came after government officials in the UK warned the company that it could put its proposed 1.9 billion pounds sterling ($3.2 billion) purchase of EastMidlands Electricity into the hands of antitrust regulators. Industry experts believe that the sale of the two generating plants, which are among the utility's five coal-fired power facilities, could fetch at least 800 million pounds sterling.

Comment:

Decides to sell its 2 generating facilities in order to step away from a possible antitrust investigation

Asset sales & divestitures, Facilities & equipment

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