PG&E; Shareholders Vote to Rescind ‘Poison Pill’

PG&E; Corp. shareholders, over the objections of the company’s board, voted at the annual meeting Wednesday to rescind a “poison pill” anti-takeover provision and criticized the utility’s executive compensation, sagging share price and suspended dividend.

The shareholder proposal isn’t binding but was a symbolic victory for investors angry over the company’s struggles.

San Francisco-based PG&E;’s Pacific Gas & Electric Co. utility is in bankruptcy protection, and its wholesale power unit, National Energy Group, has said it may seek bankruptcy protection if it can’t refinance at least $2.9 billion in debt and equity.

PG&E;’s main utility arm became insolvent in April 2001 when it was paying more to purchase power than it could charge customers under California’s energy deregulation plan. PG&E; shares eased 25 cents to $14.48 on the New York Stock Exchange.