Allegheny and FirstEnergy Announce Merger

Skadden is representing Allegheny Energy, Inc., which announced on February 11, a definitive agreement with FirstEnergy whereby the companies would combine in a stock-for-stock transaction. Both companies' boards of directors have unanimously approved the agreement. Following the completion of the merger, it is anticipated that FirstEnergy shareholders would own approximately 73 percent and Allegheny shareholders would own approximately 27 percent of the combined company.