You've heard talk lately about the convergence of electricity and natural gas. That idea has grown as commodity markets have matured for gas and emerged for bulk power.
Kansas City Power & Light Co. (KCPL) and UtiliCorp United have propose to merge in a stock transaction valued at about $3 billion. Like MidAmerican before them, the utilities are calling the deal a "merger of equals" that will result in a company with about $6.4 billion in assets and about 2.2 million customers.
KCPL shareholders will receive one share of stock for each share of KCPL common stock; holders of UtiliCorp common stock will receive 1.096 shares. There are about 62 million shares of KCPL common stock and 46 million shares of UtiliCorp common stock outstanding. Each company will continue its present dividend policy until the merger is completed; subsequent dividend policy will be developed by the new company's board of directors (em which will be made up of nine members of each utility.
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