After much contention, California Energy Co. Inc. and Magma Power Co., both geothermal energy producers, have signed a merger agreement that will give Magma
stockholders $39 a share, or about $950 million in aggregate value. The agreement has been approved by both boards of directors. California Energy's tender offer included shares representing a majority of the voting power of Magma as well as funding of financing. The merger is also conditioned on the approval of California Energy's shareholders.