Country:

Washtinton, D.C., USA

Subject:

Mergers

Item Type:

Announcement

Date of Item:

12 November 1999

Topic:

Mergers Without Borders

Summary:

A recent development on the merger front has been proposals by foreign utilities to merger with electric utilities in the US in order to take advantage of the business opportunities provided by restructuring. Commonly, the acquisition premium is directly tied to the future regulatory treatment of the merger entity by state and federal regulators, and investment uncertainty is further complicated by the prospect of new federal or state legislation. Some consumer groups have expressed concern that consolidation of control of distribution networks under foreign ownership has the potential to stifle competition. Questions have also been raised about the accountability of a parent company headquarters in a foreign country, particularly in view of national differences in financial reporting laws. So far, however, the FERC has not considered these concerns significant to the acquisitions.

Name of Reporter:

Sheila S. Hollis, Esquire

Firm Name:

Duane, Morris & Heckscher, LLP

Location:

Washington, D.C., USA

Fax:

1 202 776 7801

Email:

sshollis@duanemorris.com