Message-ID: <20956277.1075842441699.JavaMail.evans@thyme> Date: Thu, 9 Nov 2000 02:20:00 -0800 (PST) From: lorna.brennan@enron.com To: julie.mccoy@enron.com, steve.klimesh@enron.com, gary.sova@enron.com, rob.wilson@enron.com, lon.stanton@enron.com, david.marye@enron.com, courtney.barker@enron.com, sarabeth.smith@enron.com, keith.petersen@enron.com, michele.winckowski@enron.com, donna.martens@enron.com, josie.call@enron.com, bret.fritch@enron.com, donald.vignaroli@enron.com, danny.mccarty@enron.com, roger.westfall@enron.com, steve.thomas@enron.com, doug.aschwege@enron.com, judy.beck@enron.com, ken.anderson@enron.com, bryan.reinecke@enron.com, robert.johnson@enron.com, carolyn.descoteaux@enron.com, becki.souci@enron.com, gary.choquette@enron.com, ld.stephens@enron.com, john.goodpasture@enron.com, michael.ratner@enron.com, sebastian.corbacho@enron.com, yuan.tian@enron.com, rockey.storie@enron.com, kent.miller@enron.com, john.dushinske@enron.com, dave.neubauer@enron.com, bill.fowler@enron.com, michael.bodnar@enron.com, joni.bollinger@enron.com, david.badura@enron.com, janet.bowers@enron.com, craig.buehler@enron.com, bob.burleson@enron.com, allen.cohrs@enron.com, john.fiscus@enron.com, steve.gilbert@enron.com, morgan.gottsponer@enron.com, stephen.herber@enron.com, dana.jones@enron.com, stephanie.korbelik@enron.com, bill.mangels@enron.com, penny.mccarran@enron.com, vernon.mercaldo@enron.com, larry.pavlou@enron.com, eileen.peebles@enron.com, tony.perry@enron.com, loren.penkava@enron.com, ken.powers@enron.com, chris.sebesta@enron.com, frank.semin@enron.com, neal.shaw@enron.com, larry.swett@enron.com, kay.threet@enron.com, mike.ullom@enron.com, lisa.valley@enron.com, chuck.wilkinson@enron.com, jim.wiltfong@enron.com, jo.williams@enron.com, karen.lagerstrom@enron.com, bob.stevens@enron.com, sue.neville@enron.com, mike.barry@enron.com, martha.janousek@enron.com, kimberly.watson@enron.com, don.powell@enron.com, steve.weller@enron.com, michael.stage@enron.com, tim.johanson@enron.com, laura.lantefield@enron.com, frank.oldenhuis@enron.com, jeff.nielsen@enron.com, tracy.schwartzkopf@enron.com, robert.mason@enron.com, sean.bolks@enron.com, miriam.martinez@enron.com, lee.ferrell@enron.com, john.williams@enron.com, reyna.cabrera@enron.com, theresa.branney@enron.com, dari.dornan@enron.com, maria.pavlou@enron.com, jim.talcott@enron.com, mary.miller@enron.com, michel.nelson@enron.com, mike.mcgowan@enron.com, julia.white@enron.com, drew.fossum@enron.com, glen.hass@enron.com, mary.darveaux@enron.com, rita.bianchi@enron.com, ranelle.paladino@enron.com, patrick.brennan@enron.com, tim.kissner@enron.com, shelley.corman@enron.com, steven.harris@enron.com, jeffery.fawcett@enron.com, lorraine.lindberg@enron.com, kevin.hyatt@enron.com, christine.stokes@enron.com, tk.lohman@enron.com, michelle.lokay@enron.com, lindy.donoho@enron.com, lee.huber@enron.com, susan.scott@enron.com Subject: PNM to Buy Electric Utilitity Operations of Western Resources Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Lorna Brennan X-To: Julie McCoy, Steve Klimesh, Gary Sova, Rob Wilson, Lon Stanton, David Marye, Courtney Barker, Sarabeth Smith, Keith Petersen, Michele Winckowski, Donna Martens, Josie Call, Bret Fritch, Donald Vignaroli, Danny McCarty, Roger Westfall, Steve Thomas, Doug Aschwege, Judy Beck, Ken Anderson, Bryan Reinecke, Robert L Johnson, Carolyn DesCoteaux, Becki Sans Souci, Gary Choquette, LD Stephens, John Goodpasture, Michael Ratner, Sebastian Corbacho, Yuan Tian, Rockey Storie, Kent Miller, John Dushinske, Dave Neubauer, Bill Fowler, Michael Bodnar, Joni Bollinger, David Badura, Janet Bowers, Craig Buehler, Bob Burleson, Allen Cohrs, John Fiscus, Steve Gilbert, Morgan Gottsponer, Stephen Herber, Dana Jones, Stephanie Korbelik, Bill Mangels, Penny McCarran, Vernon Mercaldo, Larry Pavlou, Eileen Peebles, Tony Perry, Loren Penkava, Ken Powers, Chris Sebesta, Frank Semin, Neal Shaw, Larry Swett, Kay Threet, Mike Ullom, Lisa Valley, Chuck Wilkinson, Jim Wiltfong, Jo Williams, Karen Lagerstrom, Bob Stevens, Sue M Neville, Mike Barry, Martha Janousek, Kimberly Watson, Don Powell, Steve Weller, Michael G Stage, Tim Johanson, Laura Lantefield, Frank Oldenhuis, Jeff Nielsen, Tracy Schwartzkopf, Robert Mason, Sean Bolks, Miriam Martinez, Lee Ferrell, John Williams, Reyna Cabrera, Theresa Branney, Dari Dornan, Maria Pavlou, Jim Talcott, Mary Kay Miller, Michel Nelson, Mike McGowan, Julia White, Drew Fossum, Glen Hass, Mary Darveaux, Rita Bianchi, Ranelle Paladino, Patrick Brennan, Tim Kissner, Shelley Corman, Steven Harris, Jeffery Fawcett, Lorraine Lindberg, Kevin Hyatt, Christine Stokes, TK Lohman, Michelle Lokay, Lindy Donoho, Lee Huber, Susan Scott X-cc: X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\All documents X-Origin: FOSSUM-D X-FileName: dfossum.nsf PNM to Buy Electric Utility Operations of Western Resources Public Service Company of New Mexico and Western Resources said that both companies' boards of directors approved an agreement under which PNM will acquire the Western Resources electric utility operations in a tax-free, stock-for-stock transaction. Under terms of the agreement, PNM and Western Resources, whose utility operations consist of its KPL division and KGE subsidiary, will both become subsidiaries of a new holding company to be n named at a future date. Prior to the consummation of this combination, Western Resources will reorganize all of its non-utility assets, including its 85% stake in Protection One and its 45% investment in ONEOK, into Westar Industries which will be spun off to its shareholders. Based on PNM's average closing price over the last 10 days, the indicated equity value of the transaction is approximately $1.503 billion, including conversion of the Westar Industries obligation. In addition, the new holding company will assume approximately $2.939 billion of existing Western Resources' debt, giving the transaction an aggregate enterprise value of approximately $4.442 billion. The new holding company will have a total enterprise value of approximately $6.5 billion ($2.6 billion in equity; $3.9 billion in debt and preferred stock). The transaction will be accounted for as a purchase and is anticipated to be immediately accretive to PNM's earnings per share and cash flow.