The United States Enrichment Corp. (USEC), after consulting with the U.S. Treasury Department, has selected investment bankers for its proposed privatization. The Energy Policy Act of 1992 called for USEC to prepare two paths to privatization: an IPO and a negotiated mergers and acquisition transaction with a third party. USEC supplies 86 percent of the domestic uranium enrichment market, and 37 percent of the world market.
Based on competitive bidding, Morgan Stanley & Co., Inc. has been chosen as transaction manager. If the corporation opts for an intial public offering (IPO), Morgan Stanley will assist USEC as lead manager. On a merger transaction, the bank will serve as merger/acquisition adviser. In the event of an IPO, Merrill Lynch & Co., Inc. has been chosen as co-lead manager, and Dean Witter Reynolds, Inc., Janney Montgomery Scott, Inc., Lehman Brothers Inc., M.R. Beal & Co., Prudential Securities Inc., and Salomon Bothers Inc. will serve as co-managers. t
Inside Washington items were reported by Lori A. Burkhart, an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.