Pepco Holdings, Inc.NYSE
Wed, Mar. 23, 2:04 PM
- Pepco (POM +27.7%) has blasted off on news Washington D.C. regulators have approved the company's $27.25/share acquisition by Exelon (EXC +0.9%).
- The D.C. Public Service Commission voted 2-to-1 to approve the deal, after having twice rejected it. The FERC, the DOJ, and the states of Maryland, New Jersey, and Delaware have already approved.
- Prior Exelon/Pepco coverage
Fri, Mar. 11, 3:06 PM
- Pepco (POM -7.3%) plunges after the D.C. People's Counsel says the latest merger proposal with Exelon (EXC -0.6%) is unacceptable.
- POM and EXC proposed new settlement terms after D.C. regulators twice rejected the merger terms, but the People's Counsel - one of several city officials who need to sign off on the deal - says she would not support it.
- D.C. is the only jurisdiction that has not approved the merger.
Mon, Mar. 7, 2:08 PM
- Exelon (EXC +1.5%) and Pepco (POM +1.3%) propose three options they say would prevent the loss of customer benefits and allow the companies to complete their planned $6.8B merger.
- The utility companies are not offering D.C. any more money but say they would support efforts by D.C. regulators and politicians to come up with a new plan for how to distribute $78M they offered the city in exchange for its support.
- It is unclear whether such a compromise is possible among D.C. politicians and regulators after last week's rejected of a plan negotiated by the mayor that would have used part of the $78M to shield residents from rate increases.
- Shares resume trading after a brief halt.
Fri, Mar. 4, 1:28 PM
- Pepco Holdings (POM +4.1%), awaiting regulatory approval for its acquisition by Exelon (EXC +1.1%), says the two utilities are in talks with state authorities and today's deadline to close the deal "is no longer a trigger."
- EXC previously said that if a merger settlement was not approved by D.C. regulators by March 4, it would have the right to walk away from the merger.
- Earlier this week, D.C.'s mayor withdrew her support for the deal, saying she objected to new provisions set by regulators regarding ratepayer protections with D.C. Water also joining parties objecting to the merger.
Thu, Mar. 3, 5:58 PM
- The D.C. water and sewer authority is the latest city agency to come out against a revised settlement that would allow Exelon (NYSE:EXC) and Pepco (NYSE:POM) to merge.
- DC Water general manager George Hawkins, one of several city officials that must sign off on a settlement agreement that was revised last week by city regulators, said today that he opposes the deal.
- Mayor Bowser and the city's attorney general said yesterday that they would not support the deal, leaving the merger in doubt.
- POM shares could lose another $4-$5/share if the merger does not close, says Guggenheim Securities analyst Shahriar Pourreza: “Given that [POM] has been out of a rate case since 2014 and the delays with this merger, [it] has materially deteriorated as a stand-alone company.”
- POM lost another 2% in today's trade, and has shed 11.5% since Tuesday.
Tue, Mar. 1, 2:42 PM
- Pepco Holdings (POM -14.1%) extends earlier losses after D.C. Mayor Bowser says she does not support the revised merger settlement with Exelon (EXC -0.2%), following this morning's rejection by D.C.’s chief advocate for ratepayers.
- The mayor had negotiated a plan for the companies to pay $78M in exchange for D.C.’s support for the $6.8B merger; D.C.'s Public Service Commission rejected the settlement last week but left the door open to reconsider the deal under new terms.
- D.C.’s attorney general then said the new terms jeopardized benefits for D.C. ratepayers, and the ratepayer group joined in, saying the PSC had taken away a principal benefit of the merger from residential electricity customers by removing the guarantee of no rate increases through March 2019.
Tue, Mar. 1, 11:48 AM
- Pepco Holdings (POM -8.6%) plunges on news that the People's Counsel advocacy group comes out against the revised settlement agreement for a proposed merger with Exelon (EXC -0.7%).
- The D.C. Public Service Commission "has taken a principal benefit of the merger away from residential electricity customers by removing the guarantee of no rate increases for residential ratepayers through March 2019," according to the People's Counsel.
- Last week, the PSC rejected the proposed merger but offered revised terms that were seen as relatively minor.
Fri, Feb. 26, 11:27 AM
- Exelon’s (EXC -0.3%) revised $6.8B agreement to acquire Pepco Holdings (POM -0.1%) is rejected by the D.C. Public Service Commission, despite having reached a settlement with the city's mayor.
- The PSC says the deal would not enhance POM's distribution system reliability and that the companies' role in developing solar and microgrid projects could "undermine competition and grid neutrality."
- However, the PSC passes a series of changes to the settlement that could result in merger approval, but it is not yet clear if EXC will consider any changes.
Tue, Feb. 23, 12:59 PM
- Exelon (EXC -1.6%) is downgraded to Sell with a $27 price target at Citigroup, which says that although EXC's merger with Pepco Holdings (POM -0.5%) is earnings accretive, it is also value destructive.
- The deal enhances EXC’s equity value by $5B but also brings with it additional parent net debt of $4B and 58M shares, Citi analyst Praful Mehta says.
- Citi says the net impact of the deal is a reduction in EXC’s standalone equity value by $1/share, and although EXC’s dividend yield is high relative to peers, the underlying weakness at the company threatens its total returns.
Fri, Feb. 19, 6:33 AM
- Pepco Holdings (NYSE:POM): Q4 EPS of $0.49 beats by $0.28.
- Revenue of $1.15B (+2.7% Y/Y) beats by $60M.
Fri, Feb. 12, 4:57 PM
- The long-delayed merger of Exelon (NYSE:EXC) and Pepco Holdings (NYSE:POM) appears headed for clearance by the D.C. Public Service Commission by the end of this month, according to a report by CTFN.
- The PSC issued a surprise rejection of the $6.8B deal nearly six months ago but is poised for a revote that is much more likely to gain approval, according to Robert Burns of the National Regulatory Institute.
- EXC and POM negotiated a settlement with the D.C. mayor's office and several opposing groups, promising tens of millions of dollars in concessions that will go far in satisfying the PSC's statutory requirement that the merger benefit ratepayers, a far stiffer standard than required by most state electric power regulators, Burns says.
- Earlier: Investors remain optimistic that Exelon-Pepco deal gets done (Feb. 10)
Wed, Feb. 10, 2:21 PM
- Exelon (EXC -1.1%) is lower after Bernstein's Hugh Wynne says it may be one of the most adversely affected companies by yesterday's Supreme Court decision to put Pres. Obama Clean Power Plan on hold.
- Investors also may be jittery over EXC's proposed takeover of Pepco (POM +0.7%); the two agreed to combine in April 2014, but they're still awaiting approval from one of their market's regulatory bodies - the D.C. Public Service Commission - which initially voted to reject the merger last August.
- EXC CEO Chris Crane said on the company's earnings call last week that if there is no resolution from the D.C. PSC by March 4, "we have to fold up" the deal.
- The spread between the offer price and POM's stock has been volatile, but at the current level it implies an 85% probability the deal will be able to close, Bloomberg's Tara Lachapelle writes.
Dec. 18, 2015, 10:54 AM
- The proposed merger of Pepco (POM -1.1%) and Exelon (EXC -0.8%) faces a new hurdle, as the General Services Administration is urging D.C. regulators to reject the deal unless changes are made that would provide more help for U.S. taxpayers.
- The agency that pays the U.S. government’s electric bills and is the largest consumer of energy in the capital says the merger unfairly subsidizes the rates of residential customers at the expense of federal taxpayers.
- GSA officials had said the merger evaluation period is not the time for the agency to make a stand on fighting disproportionate rates for commercial customers, but the new decision is a reversal in tactics, saying that commercial ratepayers should be compensated for the merger to go through.
Oct. 28, 2015, 12:18 PM
- Pepco Holdings (POM +2.9%) spikes higher as Exelon (EXC +0.9%) wins consideration from the D.C. Public Service Commission for a revised merger, according to the Washington Post.
- The PSC votes unanimously to consider a settlement that D.C. Mayor Bowser reached earlier this month with EXC that included $78M in benefits, including ratepayer assistance, solar energy subsidies and job guarantees.
- The vote allows EXC to add to its current application instead of starting all over again; EXC has feared a reapplication could have dragged on for months, adding to the expense and endangering the deal.
Oct. 26, 2015, 6:42 AM
- Pepco Holdings (NYSE:POM): Q3 EPS of $0.33 misses by $0.11.
- Revenue of $1.36B (+3.8% Y/Y) misses by $130M.
Oct. 22, 2015, 4:43 PM
- Pepco Holdings (NYSE:POM) declares $0.27/share quarterly dividend, in line with previous.
- Forward yield 4.08%
- Payable Dec. 31; for shareholders of record Dec. 10; ex-div Dec. 8.