With 96% voting in favor, Florida Progress Corp. (FPC) shareholdersin St. Petersburg, FL yesterday approved the acquisition of theircompany by CP&L Energy, following the lead of CP&L’sshareholders who had given their approval on Wednesday (see Daily GPI,Aug. 17).

“We’re obviously pleased that the overwhelming majority of ourshareholders have confidence that our combination with CP&L iswhat’s best for our company long-term,” said Florida Progress CEORichard Korpan. “They recognize that we will be better positionedto leverage our economies of scale in order to take advantage ofthe rapid growth in the Southeast and deliver increasing value toour shareholders.”

FPC shareholders will receive $54 in cash or stock, subject toadjustment, plus one Contingent Value Obligation related to recentsynthetic fuel plant purchases, for each share of FPC stock. FPCshareholders will have the right to elect cash or stock having avalue of $54, subject to adjustment based on the price of CP&Lstock during a period before the exchange is closed, and toproration if the elections exceed 65% in cash or 35% in stock.

The acquisition, still requiring approval from the NorthCarolina Utilities Commission and the Securities and ExchangeCommission, is expected to close before the end of the year.

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