Shareholders for Commonwealth Energy Systems and BEC Energy votedto approve their companies’ previously announced merger plans lastweek. The merger was first agreed to last December (See Daily GPI, Dec. 8, 1998). The new companywill be named NSTAR.

COM/Energy shareholders approved the $4.4 billion merger by wellover the two-thirds majority required, with an approval rate ofover 97% of shareholders voting on the merger. BEC’s shareholdersapproved the deal at a 96% rate.

In addition to shareholder approval, the merger also requiresapprovals from the Federal Energy Regulatory Commission, theNuclear Regulatory Commission, and the Securities and ExchangeCommission. The companies’ rate plan associated with the mergermust be approved by the Massachusetts Department ofTelecommunications and Energy. The companies anticipate that themerger will be completed this August.

Under terms of the merger agreement both BEC Energy andCOM/Energy will exchange their shares for a combination of stock inNSTAR and cash. BEC Energy shareholders may elect to receive oneshare of NSTAR’s common stock or $44.10 in cash for each BEC Energyshare they own. The cash price represents a five percent premium toBEC Energy’s closing stock price on December 4, 1998.

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