|
|
Enron Mail |
Executive News:
PNM terminates merger with Western Resources Albuquerque, N.M.-based PNM Resources announced Tuesday its board had officially killed the proposed deal to buy Western Resources' electric utility subsidiaries. The deal, originally valued at over $4 billion, had been in trouble for months, and each side sued the other in state court in New York. PNM said the merger could be terminated after Dec. 31 under the terms of the deal, if there had not been satisfactory progress made towards completing the transaction. But Western has disputed that PNM had grounds to back out of the deal. PNM sued Western in October seeking to get out of the deal alleging breach of contract, in part because of adverse rulings from the Kansas Corporation Commission (KCC) on rates and a Western restructuring plan considered vital to the transaction. Western fired back with its own lawsuit a month later, seeking at least $650 million in damages against PNM for alleged extortion, breach of contract, sabotage and improper interference in the KCC proceedings. Neither case has been decided, although PNM has asked the court to either dismiss Western's case or delay action on it until after it has decided PNM's initial suit. Western also has appealed the KCC order blocking a planned restructuring in preparation for the PNM transaction to a Kansas district court. Western fired back with its own lawsuit a month later, seeking at least $650 million in damages against PNM for alleged extortion, breach of contract, sabotage and improper interference in the KCC proceedings. Neither case has been decided, although PNM has asked the court to either dismiss Western's case or delay action on it until after it has decided PNM's initial suit. Western also has appealed the KCC order blocking a planned restructuring in preparation for the PNM transaction to a Kansas district court.
|