Bear Stearns Purchases Power Assets from The Williams Companies.Transaction Significantly Expands Bear Energy Deal includes power plant tolling agreements, energy purchase and sale contracts, customer business and an associated trading book Trading Book The portfolio of financial instruments held by a brokerage or bank. The financial instruments in the trading book are purchased or sold to facilitate trading for their customers, to profit from spreads between the bid/ask spread, or to hedge against various types of NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. Companies Inc. (NYSE NYSE See: New York Stock Exchange :BSC (Binary Synchronous Communications) See bisync. ) today announced it has signed a definitive agreement to acquire substantially all of the power and natural gas assets comprising the power trading business of Williams Power Company, Inc., an energy trading and marketing subsidiary of The Williams Companies The Williams Companies, Inc. (NYSE: WMB) is an energy company based in Tulsa, Oklahoma. Its core business is natural gas exploration, production, processing, and transportation, with additional petroleum and electricity generation assets. , Inc. (NYSE:WMB WMB Waste Management Board WMB Write Me Back WMB Wheaton Municipal Band (Wheaton, IL) WMB Waukegan Municipal Band (Waukegan, IL) WMB Websphere Message Broker ). Bear Energy LP, a Houston-based, wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Bear Stearns, will assume the portfolio of assets, which includes approximately 7700 megawatts of gas-fired tolling capacity, 1800 megawatts of full requirements power supply contracts, and an associated trading book. Bear Energy will also acquire various information systems and seek to hire Williams Power Company employees. The transaction, which is subject to regulatory and other approvals, is expected to close during Bear Stearns' fiscal fourth quarter ending November 30, 2007, and is expected to be accretive to earnings and earnings per share in fiscal 2008. "This transaction marks a substantial leap forward for our energy business," commented Bear Stearns chairman and chief executive officer James E. Cayne. "We have taken our presence in the energy markets to a new level in a way that is consistent with our prudent approach to building businesses. This acquisition provides us with strategically located generation capacity in key markets that will position us to take advantage of improving market and regulatory dynamics." "We have great admiration for the employees of Williams Power Company and look forward to building on the customer focused franchise they've created," said Paul Posoli, President of Bear Energy. "This transaction will provide us with an immediate, geographically diverse, North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. presence that allows us to broaden existing customer relationships while gaining new customers in both electricity and natural gas." Bear Stearns was advised by its investment banking division on the transaction. About Bear Energy: Bear Energy was founded in 2006 to provide flexible, comprehensive energy solutions in the physical and financial energy markets for clients across the energy value chain. Headquartered in Houston, Texas, Bear Energy currently manages more than 6000 MW of physical power assets and employs an experienced team of 160 energy professionals with extensive physical market knowledge and financial risk management expertise. As a wholly owned subsidiary of The Bear Stearns Companies Inc., all transactions are guaranteed by the A1/A/A+ rated parent, offering customers the credit quality now required in the volatile energy markets. To learn more about Bear Energy, please visit www.bearenergy.com About Bear Stearns: Founded in 1923, The Bear Stearns Companies Inc. (NYSE: BSC) is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The Company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the company has approximately 14,500 employees worldwide. For additional information about Bear Stearns, please visit the firm's web site at www.bearstearns.com |
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