Northeast Utilities and Consolidated Edison agree to extend deadline for merger

Northeast Utilities (NYSE: NU) announced it has agreed with Consolidated Edison, Inc. (NYSE: ED) to extend NU's deadline, until March 5 at 5:00 p.m. EST, for Consolidated Edison to provide reasonable assurances in writing of its intention to close the pending merger agreement between the two companies. In a letter agreement signed by the two companies this morning, NU stated it expects to receive a definitive response by that deadline whether Con Edison intends to comply with its contractual obligations to close the merger at the price and terms agreed upon over 16 months ago. Both companies also have agreed to not commence any litigation in connection with this matter until after the Monday deadline.

Northeast Utilities announced on February 28 that it had requested this assurance from Consolidated Edison, in writing, to be provided by 9 a.m. EST on March 2. On March 2, Con Edison responded by requesting additional time to continue discussions.

The merger agreement was reached on October 13, 1999 and approved by the shareholders of both companies on April 14, 2000. The companies have received necessary approvals from three federal and seven state regulatory agencies and are awaiting the final regulatory approval from the Securities and Exchange Commission, which is expected shortly.