Exelon Target Pepco Jumps Most Since October on Deal Hopesby
The Washington-based utility owner rose 2 percent to $26.27, the biggest one-day gain since October. Exelon added 0.9 percent to $28.06.
A Maryland circuit court judge last week upheld approval of the deal by that state’s Public Service Commission. Exelon wants to add Pepco’s utilities, which earn regulated returns on their spending, to offset unpredictable earnings from its group of plants that sell power on competitive markets.
“Some of the gain is relief from the Maryland ruling,” Shahriar Pourreza, a New York-based analyst for Guggenheim Securities LLC, said Monday by phone. “You’re starting to get some closure.” The deal will win approval next month, he forecast.
“The Commission correctly found that our merger proposal meets the requirements of Maryland law,” Paul Adams, a spokesman for Exelon, said in a statement. Pepco had no immediate comment.
In October, the District of Columbia Public Service Commission agreed to reconsider its rejection of the deal based on concessions by Chicago-based Exelon. Approval from the District is the last hurdle for the transaction.