Thursday, February 08, 2007

Three-Way Utility Deal

Great Plains Energy Inc. said on Wednesday it would pay $1.7 billion for utility Aquila Inc. in cash and stock after Aquila sells certain assets to Black Hills Corp. for $940 million.

Great Plains Energy, parent of Kansas City Power & Light, said it would pay $4.54 in cash and stock for each Aquila share, a 2.8 percent discount to the $4.67 that Aquila shares closed at on Tuesday.

Aquila stock fell 7.1 percent or 33 cents to $4.35 in early trading, while Black Hills shares was nearly unchanged at $39.04 and Great Plains shares rose 1 percent to $32.37.