(Corrects transaction amount in headline.)
Oct. 27 (Bloomberg) -- AES Corp., the U.S. power utility with operations in 28 countries, reached a settlement with the staff of the Ohio Public Utilities Commission and other parties in its $3.5 billion cash takeover of DPL Inc.
AES, based in Arlington, Virginia, rose 5 percent to close at $11.51 in New York. DPL rose 40 cents to $30.39.
AES, promised to limit job cuts for three years at DPL, according to a filing made late yesterday with the Ohio commission. AES also agreed to keep DPL’s Dayton Power & Light Co.’s operating headquarters in Dayton, Ohio, for at least five years.
The settlement stipulates that the merger’s costs will not be passed on to customers and limits the amount of debt that can be borrowed against DP&L, the filing said. Those participating in the agreement included the city of Dayton, the Ohio Energy Group and various consumer groups. The parties recommended that the merger be approved by state regulators.
“They’ve got a settlement and that is usually perceived as helpful in bringing a potential resolution to the regulatory proceedings under way,” Paul Patterson, a utility analyst with New York-based Glenrock Associates LLC, said in a telephone interview.
AES expects the merger to be completed by the first quarter of next year, Chief Financial Officer Victoria Harker said at an investor event last month.
--Editors: Jasmina Kelemen, Charles Siler
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