Two Kansas City Utilities Agree to a Merger
UtiliCorp United Inc. and Kansas City Power & Light Co. said Monday that they have agreed to merge in a $3-billion deal that continues the consolidation of the utility industry.
Together, the two Kansas City-based energy producers would have about 2.2 million customers and $6.4 billion in assets.
Utility mergers have become more commonplace recently as expectations have grown for further industry deregulation, which would intensify competition and force utilities to cut their expenses.
Kansas City Power shareholders would get one share in the merged company for each share they own, under the all-stock deal. UtiliCorp shareholders would get 1.096 shares for each of their UtiliCorp shares.
Wall Street appeared to applaud the combination. UtiliCorp shares rose 37.5 cents to close at $28.875; Kansas City Power & Light shares rose 50 cents to close at $26.75. Both trade on the New York Stock Exchange.
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