Allegheny, Merrill Settle Dispute For $50M

Law360, New York (January 28, 2008, 12:00 AM EST) -- Allegheny Energy Inc. will pay $50 million to buy out investment bank Merrill Lynch & Co.'s remaining stake in an Allegheny subsidiary, ending a long dispute over Allegheny's 2001 purchase of Merrill's energy trading arm.

According to a settlement disclosed on Monday, “Merrill will convey its minority equity interest in Allegheny Energy Supply Company, LLC to Allegheny.”

The Pennsylvania energy company will pay Merrill $50 million in cash, and all litigation and claims in the case will be dismissed, Allegheny stated.

The settlement ends a dispute...
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