Future Mergers

June 1 - Energy Central - Groupings of mammoth super-regional utilities in the United States won't happen any time soon. But analysts expect mergers in other forms to keep occurring as power and gas companies here seek new efficiency gains.

The ultimate goal of those companies is to increase their earnings growth. Through expansion, they could earn more than 2 percent, and up to 5 percent, while at the same time drawing new equity investors. Repeal of the Public Utility Holding Company Act of 1935 that restricted utilities' business activities has attracted investor interest. But it has also attracted more scrutiny from state regulators. That's why the trend overall is for companies to acquire strategic divisions -- ones that fit nicely with corporate missions.

Consider Williams Cos., which just recently agreed to sell most of its power assets to the energy trading subsidiary of Bear Stearns Cos. for more than $500 million. Williams is now completely out of the electricity business. Read More.