U.S. power company Entergy Corp said Tuesday it will not complete the spinoff and merger of its transmission business with U.S. transmission company ITC Holdings Corp before the end of the year as previously expected. If the deal is not completed by December 31, either party can cancel the $1.78 billion transaction, Entergy's CEO Leo Denault said on a conference call following the release of the company's earnings."We continue to believe (the ITC deal) will result in optimal value for all stakeholders," Denault said."ITC's independence, broader regional planning and sole focus (on transmission) will ... reduce congestion, attract new generating resources ... and ultimately lead to lower energy costs," he said.But state regulators have been slow to approve the deal, fearing it could increase transmission costs for consumers in Entergy's Arkansas, Louisiana, Mississippi and Texas service areas.
ITC Holdings Corp. (ITC Holdings) is engaged in the electric transmission operations of its Regulated Operating Subsidiaries. Shares of ITC traded higher by 0.52% or $0.52/share to $100.60. In the past year, the shares have traded as low as $72.93 and as high as $99.33. On average, 254706 shares of ITC exchange hands on a given day and today's volume is recorded at 162744.
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