Regional Businesses Make Major Moves

PP&L Resources Inc. has completed the acquisition of most of Bangor Hydro-Electric Co.'s power plants and transmission rights, securing its position in the region's energy market. Additionally, Hershey Foods Corp. is planning a significant expansion with a large warehouse and distribution center that could create hundreds of jobs. Meanwhile, Standard & Poor's has removed UGI Corp.'s divisions from its Creditwatch list after the company abandoned its bid to purchase Unisource Worldwide Inc. Furthermore, Infinity Broadcasting Corp., a subsidiary of CBS Corp., has acquired Outdoor Systems in a $6.5 billion deal, expanding its outdoor advertising reach. Penn Traffic Co. has also received federal court approval for its bankruptcy reorganization plan, which includes forgiving $1.1 billion of debt in exchange for control of the company.

Key Takeaways:

• PP&L Resources Inc. acquired most of Bangor Hydro-Electric Co.'s power plants, generating 83 megawatts of electricity.
• Hershey Foods Corp. will build a 1.2 million-square-foot warehouse and distribution center, potentially employing 650 people and straddling the border of Dauphin and Lebanon counties.
• UGI Corp.'s divisions, including UGI Utilities Inc. and AmeriGas Partners, were removed from Standard & Poor's Creditwatch list after the company dropped its bid for Unisource Worldwide Inc.
• Infinity Broadcasting Corp. acquired Outdoor Systems for $6.5 billion in stock, expanding its outdoor advertising reach and assuming $1.8 billion in debt.
• Penn Traffic Co. won federal court approval for its bankruptcy reorganization plan, forgiving $1.1 billion of debt in exchange for control of the company.

Statistics:

• 83 megawatts: The total electricity generated by Bangor Hydro-Electric Co.'s power plants acquired by PP&L Resources Inc.
• 1.25 shares: The exchange rate for Outdoor Systems stock against Infinity Broadcasting Corp.'s stock in the $6.5 billion acquisition.
• $6.5 billion: The value of the acquisition of Outdoor Systems by Infinity Broadcasting Corp.
• $1.8 billion: The amount of debt assumed by Infinity Broadcasting Corp. in its acquisition of Outdoor Systems.
• $1.1 billion: The amount of debt forgiven by Penn Traffic Co.'s major creditors in exchange for control of the company.
• 650: The estimated number of people that could be employed at the Hershey Foods Corp. warehouse and distribution center.
• 400: The estimated number of people that will be employed by the Hershey Foods Corp. warehouse and distribution center upon opening.

Sources:

• The Morning Call
• The Associated Press
• Reuters
• Bloomberg
• Staff and wire reports