MidAmerican to Acquire PacifiCorp

MidAmerican to Acquire PacifiCorp

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SALT LAKE CITY (AP) -- MidAmerican Energy Holdings has announced it will acquire the six-state power company PacifiCorp from ScottishPower in a $9.4 billion transaction.

MidAmerican said Tuesday that it will create an energy holding company serving approximately 3 million electric and natural gas customers in 10 states and 6.6 million customers worldwide.

The plans were announced in a news release by the Iowa-based company, and a news conference was scheduled Tuesday afternoon in Salt Lake City.

MidAmerican is to purchase all outstanding shares of PacifiCorp common stock for approximately $5.1 billion in cash plus approximately $4.3 billion in net debt and preferred stock, which will remain at PacifiCorp.

The acquisition has been approved by the boards of both companies, but is subject to approval of ScottishPower shareholders and state and federal regulatory agencies. The transaction is expected to be completed in 2006.

PacifiCorp will continue to be headquartered in Portland and will retain its name. It also will continue operating as Pacific Power in Oregon, Wyoming, Washington and northern California, and as Utah Power in Utah and Idaho.

David L. Sokol, MidAmerican chairman and chief executive officer, said in the release, "This acquisition advances our strategy of owning and operating a portfolio of high-quality energy businesses with a strong focus on customer satisfaction, employee commitment and efficiency."

Warren Buffett, chairman of Berkshire Hathaway, which acquired MidAmerican in 1999, said, "The energy sector has long interested us, and this is the right fit. We are excited to be making this long-term investment, through MidAmerican, in the premier energy company in the West."

The transaction will result in a company with assets of more than $32 billion, including $25.3 billion are in the United States.

MidAmerican will have approximately $10 billion in annual revenues internationally, including $8.5 billion from the United States, the company said.

It said it will own, operate and have under construction or in advanced development more than 16,000 megawatts generated through coal, geothermal, hydroelectric, natural gas, nuclear, biomass and wind power.

MidAmerican Energy Holdings is based in Des Moines. Through its businesses CalEnergy, CE Electric UK, Kern River Gas Transmission, Northern Natural Gas and MidAmerican Energy Company, it provides electric and natural gas service to 5 million customers worldwide, it said.

(Copyright 2005 by The Associated Press. All Rights Reserved.)

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