FirstEnergy To Acquire Allegheny For $8.5B

Law360, New York (February 11, 2010, 2:54 PM EST) -- FirstEnergy Corp. on Thursday announced plans to buy Allegheny Energy Inc. for $8.5 billion, though the companies don’t expect the deal to close for at least a year due to necessary regulatory approvals from the U.S. government and a number of states — one of which helped block another utility merger in 2006.

According to the companies, each share of Allegheny stock will be exchanged for 0.667 shares of FirstEnergy common stock, about $27.65 per share or a 31.6 percent premium on Allegheny's closing price Wednesday,...
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