Settlement eyed in lawsuit over Pepco-Exelon deal

RANDALL CHASE
AP Business Writer

DOVER, Del. (AP) — Pepco Holdings has reached a tentative settlement in a shareholder lawsuit challenging its acquisition by Exelon Corp.

The lawsuit alleged among other things that Pepco directors breached their fiduciary duties to shareholders in approving the merger. A Delaware chancery judge had scheduled a preliminary injunction hearing next week.

In a regulatory filing Friday, Washington-based Pepco said it had agreed to settle the lawsuit, subject to court approval, by disclosing additional information about its proposed acquisition by Chicago-based Exelon.

Exelon announced in April that it was buying Pepco Holdings Inc. for $6.83 billion to create a large electric and gas utility in the Mid-Atlantic region, serving approximately 10 million customers.

The deal called for Exelon to pay $27.25 per Pepco share, an 18 percent premium to the previous day’s closing price.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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