Enron Corp. has acquiesced to a demand from the Oregon Public Utility Commission for $141 million in rate cuts as a condition to approval of the proposed merger between Enron and Portland General Corp.
The PUC staff had informed Enron in March that it would not approve the merger, based on Enron's proposed $61-million rate cut, and said it would only accept $141 million in guaranteed cost savings and rate cuts.
The trade-off is that shareholders of Portland General will receive less for their stock than Enron originally had offered. Enron first had offered one share of Enron for one share of Portland, but now Portland shareholders will receive 0.9825 Enron shares for each PG share.
The Oregon PUC was scheduled to issue its final decision on June 4. Shareholders from both companies have already approved the merger.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.