Suit Seeks To Stop FirstEnergy Purchase Of Allegheny

Law360, New York (March 11, 2010, 7:23 PM EST) -- A Louisiana public pension fund has filed a putative class action aiming to stop FirstEnergy Corp. from buying Allegheny Energy Inc. for $8.5 billion, saying the proposed transaction undervalues Allegheny.

The Louisiana Municipal Police Employees Retirement System's complaint, lodged Wednesday in the U.S. District Court for the Western District of Pennsylvania, said the proposed transaction is valued at about $4.7 billion.

When the parties announced the deal, they noted that FirstEnergy also is to take on $3.8 billion in Allegheny debt.

The lawsuit also names Allegheny...
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