Central and South West Corp. (CSW) has notified El Paso Electric Co. (EPE) that it has breached the companies' merger agreement by participating in discussions about and spending large sums on a possible stand-alone reorganization plan. CSW said it was not terminating the merger, but merely protecting its rights. On May 22, CSW received a request from EPE to extend the merger agreement for six months, until December 8, 1995. "EPE's failure to remedy its breaches will be among the factors CSW considers in deciding what action to take on or after the termination date" of the merger agreement (June 8, 1995), CSW said in its letter. The proposed merger is contingent upon regulatory approvals or authorizations from state and federal agencies. It also may be terminated by either company upon certain conditions.
