Entergy And ITC Abandon Pursuit Of Transmission Spin/Merger

(RTTNews) - Integrated energy company Entergy Corp. (ETR) and ITC Holdings Corp. (ITC) Friday agreed to end their pursuit of a spin/merger of Entergy's transmission business with ITC.

The companies formally terminated the merger agreement this morning and filed pleadings to withdraw the remaining transaction approval applications with Entergy's retail regulators, as well as the Missouri Public Service Commission and the Federal Energy Regulatory Commission.

The companies originally announced the deal on December 5, 2011, and have spent the past two years working to obtain the necessary approvals to complete the transaction. The agreement called for Entergy to spin off its electric transmission business to a newly formed entity and merge it with a subsidiary of ITC.

"While we strongly believe that the transaction would be in the best interest of our customers and all stakeholders, it is clear we don't have the necessary regulatory support to close the transaction," Leo Denault, Entergy's chairman and chief executive officer, said.

Entergy affirmed its 5 to 7 percent Utility net income compound average growth rate outlook through 2016, off 2013 base, driven by superior load growth, productive capital investment and cost-saving initiatives.