In the first three-way merger in utility history, IES Industries Inc., Interstate Power Co., and WPL Holdings, Inc. propose to combine as Interstate Energy Corp. The companies project merger savings of about $700 million over a 10-year period. If approved by regulators and shareholders, the proposal would result in a corporation with market capitalization of about $2 billion, and assets of almost $4 billion. Interstate would rank 34th among U.S. utility holding companies, based on 1994 revenues.
Holders of IES Industries common stock would receive 0.98 shares of WPL Holdings, Inc. common stock for each share. Holders of Interstate Power Co. common stock would receive 1.11 shares of WPL Holdings common stock for each share. Holders of WPL Holdings, Inc. common stock would retain the number of shares held on the merger date. At that time, the dividend will be matched to that paid by WPL Holdings; subsequent dividend policy will be developed by the board of the new company.