Aquila Reaches $37.95 Million Settlement in Appraisal Rights Lawsuit.Business Editors KANSAS CITY, Mo.--(BUSINESS WIRE)--June 9, 2004 Aquila Inc. (NYSE NYSE See: New York Stock Exchange :ILA ILA abbr. insulinlike activity ) announced today that the Delaware Court of Chancery court of chancery n. pl. courts of chancery A court with jurisdiction in equity. Noun 1. court of chancery - a court with jurisdiction in equity chancery has approved a settlement in which Aquila will pay $37.95 million to shareholders who properly asserted their appraisal rights in connection with the recombination of Aquila and its former energy trading and merchant subsidiary, Aquila Merchant Services Inc. (AMS AMS - Andrew Message System ). When the company recombined with AMS in January 2002, shareholders owning 1.684 million AMS shares challenged the value they received for their AMS shares. The settlement includes interest from 2002. When the recombination procedure was complete, approximately 91 percent of AMS's outstanding shares were tendered. Shareholders who received Aquila shares in the tender offer or subsequent short-form merger were not part of this suit and, therefore, are not eligible for payment. As a result of the settlement, Aquila will record a charge to its second quarter earnings of approximately $7.5 million, plus litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. costs. Based in Kansas City, Mo., Aquila operates electricity and natural gas distribution utilities in Colorado, Iowa, Kansas, Michigan, Minnesota, Missouri and Nebraska. The company also owns and operates power generation assets. More information is available at www.aquila.com. |
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