DTE in the Market for an Acquisition
DTE Energy, Detroit Edison's parent company, said this week it
is in the market to acquire a natural gas supplier. The company is
in exploratory stages right now but hopes to have some kind of
agreement by the end of this year, a DTE official said at the
company's annual meeting.
"Natural gas is becoming the fuel supply of choice," said
Anthony Early, CEO of DTE. "To be a successful player, we're going
to have to get more involved in the gas business. Right now, we're
having to buy gas from other companies and then bid against them on
One possibility for DTE is a take over of MCN's MichCon gas
utility. "They are very attractive," Early said. "But two people
have to be interested." MCN officials would not comment.
Along with the merger search, DTE reported Wednesday a 10%
higher first quarter net income of $115 million on revenues of
$1.02 billion, which grew 8.4%. Fully diluted earnings per share
were $0.79 a share compared to $0.72 in 1Q98. DTE's main
subsidiary, Detroit Edison, serves more than 2 million customers in
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