|
Grid grabs U.S. utility
|
 |
December 14, 1998: 6:45 a.m. ET
U.K. electricity group National Grid pays $3.2B cash for New England Electric
|
LONDON (CNNfn) - Transmission group National Grid announced plans Monday to acquire New England Electric System for $3.2 billion - a 25 percent premium over the utility's Friday closing stock price.
The deal is the latest attempt by a U.K. electricity company to grab a piece of the fast-consolidating U.S. electricity industry.
Last week BEC Energy (BSE) and Commonwealth Energy System (CES), local rivals of NEES in Massachusetts, agreed to merge in a $1 billion deal.
The Grid (NGG) deal comes just more than a week after ScottishPower (SPW) agreed to buy PacifiCorp (PPW) for $4.7 billion.
The deal includes the assumption of $1 billion of NEES debt, taking its total value to about $4.2 billion. National Grid will raise the cash from extra borrowing.
National Grid owns and operates the U.K.'s high-voltage transmission network, and claims to be the world's largest privately-owned transmission company.
NEES shares closed Friday in New York at $43. In London Monday Grid shares were 2 percent lower at 498 pence.
|
|
|
|
|
 |
|
