Deals Bring Control Of Oncor Electric
NextEra Energy Inc. announced two transactions that would, when combined with a previously announced deal, give it complete ownership of the electricity-transmission business Oncor Electric Delivery Co.
NextEra said Monday that it reached an agreement for an affiliate to merge with Texas Transmission Holdings Corp. for about $2.4 billion, a deal that would include Texas Transmission's 20% interest in Oncor. NextEra also will buy a 0.22% interest in Oncor, which is owned by Oncor Management Investment LLC, for about $27 million.
Florida-basedNextEra is in the process of buying the 80% of Oncor that is owned by Energy Future Holdings Corp., which is operating under chapter 11 bankruptcy protection.
NextEra has agreed to pay $4.4 billion in cash and pay off $5.4 billion worth of bankruptcy financing to get Energy Future's Oncor stake.
NextEra also said Monday that profit fell 14% in the third quarter amid higher expenses and as earnings growth in its Florida power business was offset by declines in its clean energy business. Over all, fFor the September quarter, NextEra Energy reported a profit of $753 million, or $1.62 a share, down from $879 million, or $1.93 a share, a year earlier.
Excluding items, such as merger-related expenses and market-to-market effects, per-share earnings were $1.74. Revenue fell 3% to $4.81 billion. Analysts polled by FactSet expected per-share profit of $1.67 and revenue of $4.84 billion.
--Joshua Jamerson and Peg Brickley
Team Health Holdings
Blackstone Reaches $3.2 Billion Deal
Team Health Holdings Inc. said Monday the company has reached a deal to sell itself to a group of investors led by private-equity firm Blackstone Group LP for about $3.2 billion.
The deal to take Team Health private values it at $43.50 a share, which is a 33% premium to the stock's closing price on Oct. 3, before The Wall Street Journal reported that talks were under way. Team Health shares were up 16% to $42.85 in 4 p.m. New York Stock Exchange composite trading Monday.
The companies valued the deal at $6.1 billion; announced deal values often include debt or other factors. Team Health had $2.4 billion in debt earlier this month, according to S&P Global Market Intelligence.
Team Health, based in Knoxville, Tenn., offers outsourced health-care services, such as emergency care, hospital medicine and anesthesiology, according to its website.
Marketing Giant Feels Brexit's Effects
WPP PLC said on Monday that its U.K. business had softened in "perhaps the first signs of Brexit anxiety."
The world's largest marketing company by revenue said revenue rose 23.4% to GBP3.61 billion ($4.4 billion) in the three months ended September as it continued to benefit from the Brexit-weakened pound..
But the owner of agencies such as Ogilvy & Mather and Grey said that its U.K. comparable net sales -- a closely tracked revenue measure which strips out costs linked to acquiring digital media space and currency swings, acquisitions and disposals -- slowed in the most recent quarter as clients withheld spending.
"Every time I talk to a client the first thing that comes out of their mouth is 'Brexit,' " WPP Chief Executive Martin Sorrell said in an interview. "There is a lot of uncertainty and in these circumstances clients are unwilling to invest."
Since the U.K. voted to leave the European Union in June, Mr. Sorrell has accelerated his growth strategy in Germany, France, Italy and Spain, the four EU countries among its top 10 markets globally. Mr. Sorrell said long-term Brexit negotiations are among the half-dozen worrisome trends facing the firm in the coming months, as well as the potential for gridlock in the aftermath of the U.S. election and political issues in Eastern Europe and the Middle East.
WPP, which counts Ford Motor Co. and HSBC PLC among its clients, is known as a bellwether for economic trends due to its presence in all major markets.
Overall, like-for-like net sales rose 2.8% in the most recent period, topping analyst forecasts of a 2.7% rise and driven by a strong performance in Western continental Europe and North America.
(END) Dow Jones Newswires
November 01, 2016 02:48 ET (06:48 GMT)
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