FirstEnergy Corp. to Buy Allegheny in $8.5 Billion Deal
On Feb. 11, FirstEnergy Corp. announced it will acquire Allegheny Energy Inc. in a deal valued at about US$8.5 billion that will create a combined company with 10 regulated electric distribution companies, about 24,000 MW of generation and nearly 20,000 miles (32,187 km) of high-voltage transmission lines.
Allegheny shareholders will receive 0.667 of a share of FirstEnergy stock for each share of Allegheny, equal to about $27.65 per share, or about $4.7 billion in total, based on the Feb. 10 closing price of FirstEnergy stock. The deal offers Allegheny Energy shareholders a 31.6% premium to Allegheny's Feb. 10 closing price and a 22.3% premium to the stock's average stock price in the last 60 days. FirstEnergy also will assume about $3.8 billion of Allegheny debt.
Visit www.firstenergycorp.com.
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