FirstEnergy stockholders approve proposal related to $4.2B Allegheny Energy buyout
By APTuesday, September 14, 2010
FirstEnergy holders OK proposals related to buyout
AKRON, Ohio — Allegheny Energy Inc.’s stockholders approved the company’s $4.2 billion buyout by FirstEnergy Corp. on Tuesday.
The stock deal announced in February would form one of the biggest power companies in the country, made up of 10 utilities serving 6.1 million customers from Ohio to New Jersey.
FirstEnergy President and CEO Anthony Alexander said in a statement that the transaction should bolster the company’s balance sheet, boost its earnings and “create new opportunities for future growth.”
FirstEnergy’s stockholders also approved proposals related to the takeover during a separate meeting. The proposals include authorizing the issuance of FirstEnergy shares and amending the company’s articles of incorporation.
The deal is expected to close in the first half of next year.
FirstEnergy is based in Akron, Ohio while Allegheny is based in Greensburg, Pa.
Shares of FirstEnergy fell 59 cents to $36.75 in afternoon trading, while Allegheny’s stock dropped 16 cents to $23.05.
