Western Resources Inc. plans to buy Kansas City Power & Light Co. in a $2-billion stock swap, the companies announced, in the first hostile takeover of a U.S. utility. Under the tax-free deal, Kansas City, Mo.-based Kansas City Power shareholders would receive $32 worth of Topeka, Kan.-based Western Resources’ common stock for each share they hold. Kansas City Power’s surrender ended a 10-month battle in which UtiliCorp United Inc., also based in Kansas City, saw its friendly $1.7-billion merger agreement collapse after shareholders rejected it in September. The merged company would have nearly $3 billion in annual revenue and nearly 2.5 million customers. Kansas City said the companies agreed there would be no layoffs as a result of the merger.
Western Resources to Buy Kansas City Power
Times Staff and Wire Reports