Northeast Utilities agreed to buy rival New England electric power producer NSTAR for $4.2 billion in stock and $2.5 billion in assumed debt on October 18. At about $40.28 per share, the deal gives NSTAR ‘s shareholders virtually no premium, though they did see their stock appreciate by 24 percent over the previous year.
Northeast Utilities shareholders would own 56 percent of the combined company, NSTAR shareholders 44 percent. NSTAR CEO Thomas May will hold the same spot at Northeast Utilities. Current Northeast CEO Charles Shivery will become chairman of the company’s board, with May taking over as chairman 18 months after the deal closes.
