What to do with All that Cash?
unsuccessful diversification, the current eagerness of utility managements to expand beyond their franchises raises questions about the priority that will be given to shareholder interests. The hostile attempt by Western Resources to buy Kansas City Power & Light (KCP&L) is a case in point. Western has shown itself so anxious to acquire KCP&L that it is willing to pay a price that carries important risks for Western shareholders. And by rejecting Western's excessively generous offers, KCP&L appears so eager to pursue its own expansionist agenda that it will disregard the interests of its shareholders. t
Charles M. Studness is a contributing editor of PUBLIC UTILITIES FORTNIGHTLY. Dr. Studness has a PhD in economics from Columbia University, and specializes in economics and financial research on electric utilities.
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