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Independent Advisory Firms Recommend A Vote "FOR" Allegheny Energy's Proposed Merger With FirstEnergy - Quick Facts

(RTTNews) - Thursday, Allegheny Energy, Inc. (AYE) said that four independent proxy advisory firms have recommended that Allegheny Energy stockholders vote "FOR" the company's proposed merger with FirstEnergy Corp. (FE).

According to the company, ISS Proxy Advisory Services, Glass, Lewis & Co., PROXY Governance, Inc. and Egan-Jones Proxy Services have all issued reports outlining the benefits of the merger for Allegheny Energy stockholders.

"We're pleased that these firms concur that the merger will create considerable value for our stockholders. Allegheny holders will receive a meaningful premium and a significant increase in the dividend based on FirstEnergy's current practice," said Paul Evanson, CEO of Allegheny Energy. "The combined company will have substantial upside potential with increased scale and a more diverse generation fleet."

In February, Allegheny Energy announced plans to combine with FirstEnergy in a stock-for-stock transaction to create a regional energy provider. The merger is expected to close in the first half of 2011, subject to customary closing conditions, including shareholder and regulatory approvals, as outlined in the joint proxy statement/prospectus mailed to shareholders.

AYE is currently trading at $23.20, down $0.10 or 0.43%, on a volume of 532 thousand shares on the NYSE.

FE is currently trading at $37.11, down $0.34 or 0.91%, on a volume of 888 thousand shares on the NYSE.