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Massive IPP Sithe Energies Moves Closer to Sale

October 25, 1999
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Massive IPP Sithe Energies Moves Closer to Sale

New York-based Sithe Energies, a privately held leading independent power producer, said it has hired Goldman, Sachs & Co. as an advisor in its previously announced intention to sell the company.

Earlier this month, the company said it started looking for a buyer after its 60% owner France's Vivendi decided it wanted to reallocate its investments into core operations that excluded U.S. power production.

At a meeting in Paris on Oct. 1, Sithe's board of directors, including representatives of Vivendi and Japan's Marubeni Corp., Sithe's two largest shareholders, appointed William Kriegel, chairman and CEO of Sithe to initiate and manage the sale process.

The "for sale" sign came as a surprise to observers because Sithe has spent the last few years building a massive U.S. power production portfolio, which includes 51 plants with 28,000 MW of generation capacity; 40 plants are located in the northeastern U.S.

The company currently is attempting to complete a $1.68 billion acquisition of GPU's 23 non-nuclear power plants after having purchased Boston Edison's fossil-fuel plants two years ago for $536 million. It also previously announced plans to spend another $1 billion on power plants over the next couple years.

Rocco Canonica

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