PNM Halts Western Resource Deal
LCG, Jan. 9, 2002--PNM Resources, which had been in negotations to acquire Western Resources Inc.s Kansas-based utility operations in a stock deal, announced that its Board of Directors had decided not to move forward any further with the proposal.The transaction had originally been considered in November 2000, but was prone to being cut short if progress in the deal was not considered acceptable by the close of 2001.PNM brought suit against Western Resources in October on the grounds that Western Resources misrepresented regulatory requirements and adverse regulatory rulings. The next month brought a countersuit from Western, and both lawsuits are held up in New York state court.PNM Senior Vice President Patrick Ortiz, who serves as chief legal counsel and corporate secretary, stated, "It is clear that this transaction cannot be completed as originally designed. Regulatory rulings in Kansas, including one declaring a necessary condition of the transaction to be unlawful, and actions and failures by Western which are inconsistent with the terms of the Agreement made it necessary for PNM to take this action."PNM Resources, based in Albuquerque, New Mexico, is an energy holding company the principal subsidiary of which is Public Service Company of New Mexico. The subsidiary is a supplier of electric power and natural gas service to over 1.3 million people in New Mexico. It is also a seller of power within the Western U.S. wholesale market.
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