PITTSBURGH -- Duquesne Light officials announced on Wednesday that the company will receive $1.59 billion to merge with a New York investment firm which will take the utility's shares off the market.

A consortium led by Australia's Macquarie Bank, which includes Macquarie Infrastructure Partners and other investors, is paying $20 a share -- 20 percent more than the shares were worth Monday.

Duquesne Light will continue to be headquartered in Pittsburgh, and the company's CEO will continue to run it, according to a news release.

"It was very important for us not have a transaction where we lose a headquarters and lose all the jobs that support that headquarters," said Morgan O'Brien, president and chief executive officer of Duquesne Light. "This transaction will really protect that asset to this community."

Localy, Duquesne Light employs about 1,500 people.

"There are no layoffs contemplated as part of this transaction," said O'Brien.

Under the deal with the Macquarie Consortium, the investment firm will also assume more than $1.4 billion of Duquesne Light's long-term debt and other liabilities.

The deal is subject to regulatory approvals by the Federal Energy Regulatory Commission and the state's public utility commission. Duquesne Light distributes electricity to 587,000 customers in the Pittsburgh area.

The consortium said it expects the deal to close in the first quarter of 2007.

Channel 4 Action News will have complete coverage on the story beginning at 5 p.m. Refresh this page for updates throughout the day.

---

Related Links:
More Allegheny County News

---