Wes­tar, Great Plains set $14B merger

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — The As­so­ci­ated Press

TOPEKA, Kan. — Wes­tar En­ergy and Great Plains En­ergy have an­nounced a re­vamped plan to merge af­ter Kansas reg­u­la­tors scut­tled an ear­lier deal.

The Topeka Cap­i­tal-Jour­nal re­ports that the deal an­nounced Mon­day morn­ing would form a util­ity with a com­bined eq­uity value of about $14 bil­lion. The move comes af­ter the Kansas Cor­po­ra­tion Com­mis­sion de­nied the $12.2 bil­lion sale of Topeka-based Wes­tar to Kansas City, Mo.-based Great Plains En­ergy in late April. Reg­u­la­tors cited con­cerns about a high price, the cap­i­tal struc­ture, merger sav­ings and Kansas job re­ten­tion, among other is­sues.

Un­der the new deal, each share of Wes­tar En­ergy could be ex­changed for a share in the new com­pany. Great Plains shares would be worth about 60 per­cent of a share in the new com­pany.

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