Shareholders OK Commonwealth/BEC Merger
Shareholders for Commonwealth Energy Systems and BEC Energy voted
to approve their companies' previously announced merger plans last
week. The merger was first agreed to last December (See Daily GPI, Dec. 8, 1998). The new company
will be named NSTAR.
COM/Energy shareholders approved the $4.4 billion merger by well
over the two-thirds majority required, with an approval rate of
over 97% of shareholders voting on the merger. BEC's shareholders
approved the deal at a 96% rate.
In addition to shareholder approval, the merger also requires
approvals from the Federal Energy Regulatory Commission, the
Nuclear Regulatory Commission, and the Securities and Exchange
Commission. The companies' rate plan associated with the merger
must be approved by the Massachusetts Department of
Telecommunications and Energy. The companies anticipate that the
merger will be completed this August.
Under terms of the merger agreement both BEC Energy and
COM/Energy will exchange their shares for a combination of stock in
NSTAR and cash. BEC Energy shareholders may elect to receive one
share of NSTAR's common stock or $44.10 in cash for each BEC Energy
share they own. The cash price represents a five percent premium to
BEC Energy's closing stock price on December 4, 1998.
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