Allegheny, FirstEnergy to merge in $8.5-bil deal, become 40 mil-st/year coal burner

摘要

FirstEnergy and Allegheny Energy on Thursday said their companies’ boards have approved an agreement to combine the companies in an all-stock deal valued at $8.5 billion. FirstEnergy shareholders would own about 73% of the combined company, which would retain the FirstEnergy name and corporate headquarters in Akron, Ohio, according to the joint statement. The combined company would take more than 40 million short tons/year in coal supplies from Appalachia, the Illinois Basin and the Powder River Basin, based on the two individual companies’ coal needs now. Under the deal, Allegheny shareholders would receive 0.667 shares of FirstEnergy common stock for each share of Allegheny stock, a value of $27.65/share, or $4.7 billion based on the February 10 closing prices.