MidAmerican CalEnergy merger - Quad-Cities Online: Local

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MidAmerican CalEnergy merger

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Posted: Thursday, August 13, 1998 12:00 am | Updated: 8:54 am, Fri Apr 25, 2014.

The proposed merger of MidAmerican Energy and CalEnergy would create one of the largest publicly held companies in the Midwest and the largest in Iowa. Here are the specifics of the deal:

-- CalEnergy will pay $27.15 in cash for each MidAmerican common share oustanding, valuing MidAMerican at about $4 billion, including $1.4 billion of debt and preferred stock.

-- MidAmerican Energy will keep its name and become a wholly owned subsidiary of CalEnergy.

-- CalEnergy will be renamed MidAmerican Energy Holdings Co. and will reincorporate in the state of Iowa.

-- The new company will hold total assets of $11.8 billion, annual revenues of about $5 billion and serve more than 3.3 million retail customers worldwide.

-- CalEnergy head David Sokol will continue as chairman and chief executive officer (CEO) of the new company, operating from his current office in Omaha, Neb.

-- MidAmerican chairman, president and CEO Stanley Bright will become vice chairman of the new company's board and a member of its executive commission.

-- The new company's corporate headquarters in Des Moines, Iowa, will be directed by president and chief operating officer Greg Abel.

-- Directors of both companies approved terms of the deal Tuesday.

-- The deal is subject to regulator and shareholder approval, which are expected late this year or early next year.

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