Iberdrola issues shares to pay for US energy firm

27th June 2007, Comments 0 comments

27 June 2007, MADRID - Spanish utility Iberdrola SA said Wednesday it will finance the acquisition of Energy East, a power supplier to the northeast U.S., by issuing about 85 million new shares.

27 June 2007

MADRID - Spanish utility Iberdrola SA said Wednesday it will finance the acquisition of Energy East, a power supplier to the northeast U.S., by issuing about 85 million new shares.

The transaction represents about 7 percent of the existing share capital, the company said in a statement.

Iberdrola announced its intention to buy Energy East for €3.4 billion (US$4.6 billion) in cash on Monday. The deal also includes the assumption of €3 billion (US$4 billion) in debt.

The acquisition is subject to shareholder and regulatory approval.

Iberdrola shares dropped 1.2 percent to EUR 40.72 (US$54.81) in Madrid.

[Copyright AP with Expatica]

Subject: Spanish news

 


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