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Wis. energy companies tie
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June 28, 1999: 7:40 a.m. ET
Wisconsin Energy to buy Wicor for $1.27B in cash, stock and debt
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NEW YORK (CNNfn) - Wisconsin Energy Corp. said Monday it is buying natural gas supplier Wicor Inc. for $1.27 billion in cash, stock and debt assumption, creating a major Midwest energy company.
Under the terms of deal, Wicor shareholders will get $31.50 per share, a 19 percent premium above Friday's closing price. Wisconsin Energy will pay at least 40 percent of the acquisition price with stock. The rest will be paid in cash and with the assumption of approximately $230 million of WICOR debt
A combined Wicor (WIC) and Wisconsin Energy (WEC), an electric and natural gas utility, will have 921,000 gas customers and more than one million electric customers in Wisconsin and Michigan's Upper Peninsula.
Milwaukee-based Wisconsin Energy said there will be no layoffs in the merger, which is expected to add to earnings by 2001. The purchase of Wicor, also Milwaukee-based, is expected to close by the first quarter of 2000 and create a company with a $7.5 billion market capitalization.
Wisconsin Energy has the option to increase the stock purchase percentage to 60 percent, based on the average closing prices of its stock immediately prior to the closing. If the average is less than $22.00 per share, Wisconsin Energy may elect to pay all cash.
Wicor shares dropped 1/16 to 26-9/16 Friday. Wisconsin Energy stock fell 1/8 to 27-1/6.
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Wisconsin Energy
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