Arkansas Examines Arkla Merger Plan

Fortnightly Magazine - February 1 1997
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

Finding no adverse consequences, but warning that the record was not yet complete, the Arkansas Public Service Commission has granted preliminary approval of a plan for the merger of Houston Industries, Inc., the holding company for Houston Lighting and Power Co., and NorAm Energy Corp., which provides natural gas distribution service in several states via three operating divisions, Arkla, Entex, and Minnegasco.

PSC Approval will remain conditional pending the outcome of related merger proceedings in Louisiana, Mississippi, and Minnesota, as well as before the Federal Energy Regulatory Commission and the Securities and Exchange Commission.

Burns & McDonnell – In-depth Understanding for Undergrounding – Read the Blog

Under the merger proposal as reviewed by the PSC, Houston Industries would pay $16 per share to acquire Noram, or approximately $2.5 billion.

In examining the proposal, the commission noted that state law "essentially requires" approval of merger applications unless an affirmative finding is made that one or more specific adverse conditions will occur as a result of the merger. Re Houston Industries, Inc., Dkt. No. 96-286-U, Order No. 17, Nov. 6, 1996 (Ark.P.S.C.).


This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.