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ENTERGY AND GSU RECEIVE FAVORABLE TAX RULING FROM INTERNAL REVENUE SERVICE

 BEAUMONT, Texas, and NEW ORLEANS, April 13 /PRNewswire/ -- The proposed combination of Gulf States Utilities Company (NYSE: GSU) (GSU) and Entergy Corporation (NYSE: ETR) has moved a step closer as the result of a favorable ruling issued by the Internal Revenue Service.
 The IRS ruling confirms the general tax-free nature of the transaction for federal income tax purposes as described in the joint proxy statements dated Nov. 7, 1992.
 The IRS ruling satisfies one of several conditions to consummation of the combination, which was approved by common stockholders of both companies by wide margins during separate special shareholder meetings Dec. 17, 1992.
 The combination calls for a new holding company formed by Entergy and GSU to acquire all of the common stock of Entergy and GSU. The new company, to be known as "Entergy Corporation," will own all the common stock of GSU and of Entergy's operating subsidiaries. In the combination, GSU common stockholders can elect to receive $20 (subject to adjustment in certain circumstances) in either cash or common stock of the new company for each share of GSU common stock. The total amount of cash to be paid will not exceed $250 million. Common stockholders of Entergy will automatically receive one share of common stock of the new company for each then outstanding share of Entergy common stock.
 The transaction remains subject to other regulatory approvals including the Federal Energy Regulatory Commission, the Securities and Exchange Commission, the Nuclear Regulatory Commission, the Public Utility Commission of Texas and the Louisiana Public Service Commission.
 -0- 4/13/93
 /CONTACT: Media: Harry Wadsworth, 504-569-4177, or Investors: Stuart Ball, 504-569-4817, both of Entergy; or Susan Gilley of Gulf States, 409-839-2846/
 (GSU ETR)


CO: Entergy Corporation; Gulf States Utilities Company ST: Louisiana, Texas IN: OIL SU:

BR-BN -- AT006 -- 5070 04/13/93 08:59 EDT
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Publication:PR Newswire
Date:Apr 13, 1993
Words:303
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