Rumors last week about a potential marriage between Mid-Atlanticutilities Potomac Electric Power and Conectiv turned out to be onthe money. The two companies announced yesterday that Pepco willbuy Conectiv for a combination of cash and stock valued at $2.2billion or $25/CIV share, a 19% premium compared to Friday’s close.
Rumors
Articles from Rumors
Neighbors FirstEnergy, GPU, Combine
Surprise! FirstEnergy of Akron, OH and Morristown, NJ-based GPUInc. formally announced that Monday’s widely circulated and detailedrumors of a merger were indeed true (see Daily GPI, Aug. 8). In meetings yesterday, bothcompanies’ boards of directors unanimously approved the merger underwhich FirstEnergy would acquire all of GPU’s outstanding shares ofcommon stock for about $4.5 billion in cash and common stock.
Oxy Makes Good on Altura Purchase Rumors
In a move rumored for the past few months, Occidental Petroleum(Oxy) took Altura Energy off the hands of Shell Exploration &Production Co. and BP Amoco yesterday. The $3.6 billion transactionis expected to close within the next few weeks, the companies said.
Chevron and Texaco? Maybe, Maybe Not
Merger rumors that tweaked the stock prices of Chevron andTexaco have cooled somewhat. While the industry awaits word of adeal (or no deal), observers might consider the words of managementand economics professor Lester Thurow.
Chevron and Texaco? Maybe, Maybe Not
Merger rumors that tweaked the stock prices of Chevron andTexaco have cooled somewhat. While the industry awaits word of adeal (or no deal), observers might consider the words of managementand economics professor Lester Thurow.
Briefs
Texaco stock closed up a healthy 5 1/16 Friday amid rumors thecompany is a takeover target in the sights of Chevron. Texacoclosed at 67 ¬ on the New York Stock Exchange on volume more thantwice the average. The stock’s 52-week range is 44 9/16 to 65 7/8.Chevron shares closed down 2 15/16 at 94 7/8. The stock’s 52-weekrange is 73 to 104 15/16. A Texaco spokesman could not be reachedat press time, and Chevron declined to comment on the takeoverrumor.
It’s True; El Paso, Sonat Plan Combination
Like dreams, rumors sometimes come true-and more frequentlythese days when the gossip foretells of yet another energy industryconsolidation. Last week’s buzz became this week’s ballyhoo Mondaywhen El Paso Energy and Sonat Inc. said they will merge in a $6billion deal.
Parker Dispels Rumors of AGA-EEI Union
American Gas Association President David Parker yesterdaydismissed industry speculation that the gas LDC group is exploringthe prospect of combining with its electric counterpart, the EdisonElectric Institute.