Northeast Utilities to buy Nstar in $4.17B deal

[October 18, 2010]  BOSTON (AP) -- Northeast Utilities says it will buy New England energy company Nstar in a stock-for-stock deal valued at $4.17 billion.

The combined company will own six regulated gas and electric utilities serving nearly 3.5 million customers in Connecticut, Massachusetts and New Hampshire.

The transaction is worth $40.28 per share, a 2 percent premium to Nstar's closing price Friday. Each Nstar stockholder will receive 1.312 Northeast shares for each share they own.

The deal is expected to add to Northeast Utilities earnings in the first year after its closing. Shareholder approval for the transaction will be sought in early 2011, the companies said Monday.

[Associated Press]

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