The firms said the increase in scale would allow them to better shoulder their investment plans, and would also be beneficial to the company’s shareholders. “Bigger is better” for the two companies, NStar chief executive Thomas May said. “The deal allows both of our shareholders to enjoy higher earnings and dividend growth than if we were alone.”
The deal calls for the exchange of 1.312 common shares of Northeast Utilities for each NStar share. That translates to around $40.28 for each NStar share, a roughly two per cent premium on its pre-approach price.