KeySpan, LILCO Finish Merger
KeySpan Energy Corp. combined last week with Long Island
Lighting Co. (LILCO) to form MarketSpan Corp., a new holding
company dedicated to market growth in the Northeast as well as
investments in energy in North America and abroad.
KeySpan and LILCO trading on the New York Stock Exchange will be
replaced by MarketSpan at the opening bell today. Shareholders of
LILCO will receive 0.880 shares of MarketSpan common stock for each
share of LILCO, and KeySpan shareholders will receive one share of
MarketSpan common stock for each share of KeySpan. "The merger
consummated today provides customers from Staten Island to Montauk
Point with reduced energy costs and enhanced services," said
William J. Catacosinos, CEO of MarketSpan.
Headquartered in both Brooklyn and Hicksville, MarketSpan owns
LILCO's common plant, non-nuclear electric-generation assets and
operations, and the regulated natural gas businesses of both LILCO
and Brooklyn Union. In addition, MarketSpan owns KeySpan's
unregulated subsidiaries and its investments in gas exploration,
production and transportation - including a 66% ownership in
Houston Exploration Co. The KeySpan unregulated subsidiaries will
retain their names. Brooklyn Union will continue to serve customers
in Brooklyn, Queens, and Staten Island. A separate MarketSpan
subsidiary will provide gas service to Long Island also under the
Brooklyn Union name.
In conjunction with the sale of some of LILCO's electric assets
to the Long Island Power Authority, LIPA became the authority
providing electric service on Long Island.
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