First Energy Bought Allegheny

[linedog50]

First Energy to buy Allegheny Energy I really feel sorry for all those folks,wonder how many union people they'll try to cut,probably want to redo contracts.

[electriklady]

That just expanded the kingdom into West Virginia, Virginia, and Maryland.

Welcome to the fun guys and gals!:(

[jrwhd68]

They have a carbon copy paper on how to tear the company apart, it will be know differnt then with us. PREPARE your self Allegheny (Union Employees) Sad to say the worst is about to come your way! and its name is worst enemy. prepare to meet the FIFO's

[cantwait]

Sorry guys, your work life is about to change be ready for constant strife and get ready to find out how little about the work you actually know.:rolleyes::rolleyes: Get ready for an invasion of ignorant, arrogant assholes.

[climbing high]

yep 4 billion dollars and no beeper money and $200 a year for fr clothing! not bad I wonder do they have to buy their own toilet paper too? What a bunch of phonies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[brokenxarm]

Brothers and Sisters, You best be growin' a set real fast. If this thing goes thru you WILL be tested. Contact Local 459 for the lowdown on FE. You won't be impressed. I believe your contract is up next May......get prepared NOW!!! It won't be fun.

[electriklady]

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Energy & Environment



In $4.7 Billion Deal, FirstEnergy of Ohio Is to Buy a Pennsylvania Utility


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CloseLinkedinDiggFacebookMixxMySpaceYahoo! BuzzPermalink By MICHAEL J. de la MERCED
Published: February 11, 2010
FirstEnergy of Ohio agreed on Thursday to buy Allegheny Energy of Pennsylvania for $4.7 billion in stock, creating a giant electricity provider with customers spread across the Midwest and mid-Atlantic.

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Go to Blog » The acquisition is a sign of what some analysts expect to be a wave of consolidation among energy producers to help lower costs and gain scale. But analysts and investors cautioned that regulators may stymie the deal, as they have with previous merger attempts between energy producers.

The combined company, which will retain FirstEnergy’s name and headquarters in Akron, Ohio, will have about six million customers, $16 billion in annual revenue and $1.4 billion in annual profit. It will own 10 distribution companies in seven states — Maryland, New Jersey, New York, Ohio, Pennsylvania, Virginia and West Virginia — and generate electricity from a mix of coal, nuclear, natural gas, oil and renewable energy sources.

Through the deal, FirstEnergy will raise its generating capacity to 24,000 megawatts, and it will have nearly 20,000 miles of high-voltage transmission lines across the Midwest and mid-Atlantic. It also expects to be better able to improve the environmental cleanliness of its fleet of power plants through the acquisition.

While the chief executives of the two companies had long thought that a merger would make sense — the two worked together on projects in the past — it was not until late December that FirstEnergy and Allegheny began exploring a deal, Anthony J. Alexander, FirstEnergy’s chief executive, said in an interview on Thursday. Combined, the two companies will have a stronger balance sheet with plenty of cash to invest in new projects, he said.

“You see few mergers that have the same feature set and business logic that this merger does,” Paul J. Evanson, Allegheny’s chief executive, added.

Under the terms of the deal, Allegheny shareholders will receive 0.667 shares of FirstEnergy stock for every Allegheny share they own, worth about $27.65 at Wednesday’s closing prices. That represents about a 32 percent premium to Allegheny’s closing price on Wednesday and a 22.3 percent premium to the company’s 60-day average price. FirstEnergy will also assume about $3.8 billion of Allegheny’s debt.

The deal must still be cleared by several regulatory agencies, including the Federal Energy Regulatory Commission and regulators in Maryland, Pennsylvania, Virginia and West Virginia. Both Mr. Alexander and Mr. Evanson dismissed concerns that the deal would not gain regulatory approval.

Shares in Allegheny rose 12 percent, to $23.55, on Thursday, but remained below FirstEnergy’s offer price, worth about $26.41 at market close.

After the deal’s completion, which is expected in 12 to 14 months, FirstEnergy shareholders will own about 73 percent of the new company.

Mr. Alexander will remain chief executive, and Mr. Evanson will become executive vice chairman. Mr. Alexander said he expected few job cuts among engineers but did not address other staff cuts.

FirstEnergy said it expected the deal to add to its earnings in the first year after the deal is completed.

FirstEnergy was advised by Morgan Stanley and the law firm Akin, Gump, Strauss, Hauer & Feld. Allegheny was advised by Goldman Sachs and the law firm Skadden, Arps, Slate, Meagher & Flom.

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FirstEnergy Info

[Chester]

I have a lot of good friends at allegheny. I'm hoping for the best for them.

[short stick]

It will get worse Allegheny with FE Hold on

[yager024]

I always wanted to move to Maryland or the Virginias now I can just transfer...

Does any one know what top pay is in those areas as of right now?

[electriklady]

We had a guy a few years ago that quit Allegheny and came to work for Penelec...seems like they make less than us, but dont hold me to it......anyways he didnt much care for FE so he quit and went back to Allegheny...........bet it is kind of like the movie "Groundhog Day" for him....we were kinda wonderin what he thought of the news!:confused:

[singlespool]

you boys at allegeny are in for a CULTURE SHOCK!!! remembet those two words because you'll be hearing alot and its the words they live by.. if any linemen from allegeny are interested I have a booklet that will be handed to all management titled cultural change for management and its thier bible..

[Lizzy Bordon]

Dear Allegheny Employees,

These are the only four letters you need to know. FIFO=F$cking Idiots From Ohio.

Hide all the sharp objects so you do not do something silly because you will be counting the days until you can retire.

Update your resume, so that when it hurts to breath each day you enter the building, your one step ahead to find a new job.

Get used to the smell of plastic shoes since they are too cheap to buy leather. Thrift store suits and comb over Donald Trump style hair or better yet the wanna be Marine haircuts (done with dog clippers).

I feel horrible for you guys, you have no clue how bad it can be. We thought we had it bad at GPU...........haaaaaaaaa only the good die young so FE will be around forever.

Allegheny is going to be a new train wreck. The light at the end of the tunnel is a train.

Wait until the customers see what they are in for.......no lights......dont even think about having electric.........numb nuts.....Mr. Fake Cowboy.....ho ho ho will handle it all.........strutting in his 70's jeans looking like Woody from Toy Story........Ok had to vent!!!!