Allegheny Energy acquisition challenged
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The Louisiana Municipal Police Employees Retirement System wants a federal judge in Pittsburgh to stop FirstEnergy's proposed $4.7 billion takeover of a western Pennsylvania electric company.
The retirement system owns an unspecified amount of Allegheny Energy stock that it claims is being undervalued in the deal.
FirstEnergy, of Akron, Ohio, wants to combine the companies to serve 6.1 million customers from Ohio to New Jersey. The deal is expected to close within 13 months, subject to regulatory approvals.
The 20-page lawsuit wants a judge to stop the deal until Allegheny Energy gets more value for shareholders -- possibly by selling the company through a competitive bidding process.
The utility companies didn't immediately return calls Thursday.
First Published March 11, 2010 10:33 am
