Northeast Utilities, Con Edison delay action to Monday

Northeast Utilities, Hartford, Conn., said Friday it will not take legal over its proposed merger with Consolidated Edison until after 5 p.m. Monday, when it expects to receive written assurance the New York company intends to close the deal. On Wednesday, Northeast demanded Con Edison provide written assurance it is ready to move ahead with the merger of the companies, announced in October 1999, once the transaction is approved by the US Securities and Exchange Commission.

March 2, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Mar. 2�Northeast Utilities, Hartford, Conn., said Friday it will not take legal over its proposed merger with Consolidated Edison until after 5 p.m. Monday, when it expects to receive written assurance the New York company intends to close the deal.

Earlier, Con Edison said Northeast Utilities had agreed to an extension of its Friday deadline. On Wednesday, Northeast demanded Con Edison provide written assurance it is ready to move ahead with the merger of the companies, announced in October 1999, once the transaction is approved by the US Securities and Exchange Commission.

In a letter agreement signed by the two companies Friday, Northeast said it expects to receive a definitive response by Monday. It said both companies also agreed not commence any litigation in connection with this matter until after the Monday deadline.

Con Edison Wednesday said it was reviewing the prospects for the merger agreement reached with Northeast Utilities in light of changes in the New England utility's businesses. Con Edison did not outline the nature of the changes it had in mind. But last October the company said it was reviewing its options after Connecticut regulators imposed a series of stiff restrictions on the proposed acquisition.

Con Ed agreed to acquire New England's largest electric utility last year in exchange for $3.29 billion in cash and stock. Including gas distribution operations of both companies, it would create the nation's largest utility holding company serving 6 million customers.

The deal has been approved by the shareholders of both companies and by three federal and seven state regulatory agencies.

The New York Stock Exchange delayed trading in Northeast Utilities shares early Friday morning, pending the announcement. At mid-day, the stock was up $1.41 or 7.19% at 21.01/share. Con Edison was trading down 61�/share or 1.67% at $36.