Shareholder Lawsuit Challenges Proposed Westar / KCPL Merger
Another shareholder lawsuit is challenging the proposed merger of the parent company of Kansas City Power & Light Co. and Westar Energy Inc. in Topeka.
The $14 billion cash and stock deal, a so-called merger of equals, was announced in July. The merged company, to be called Monarch Energy Holding, would have about 1.6 million customers in Missouri and Kansas.
Regulators rejected an earlier proposed deal because they said the price was too high and required KCP&L’s parent to take on too much debt.
In September, a shareholder sued to stop the current deal, saying shareholders were not given enough financial information to make an informed decision whether to approve it. On Friday, another shareholder sued on similar grounds.
Both lawsuits seek class-action status on behalf of Westar shareholders.
The companies claim savings from the merger would generate $50 million in credits for customers.
Dan Margolies is KCUR’s health editor. You can reach him on Twitter @DanMargolies.
To contact KMUW News or to send in a news tip, reach us at email@example.com.