Orion

The multibillion dollar merger of Baltimore-based Orion Power Holdings Inc. and Houston-based Reliant Resources Inc. cleared two major regulatory hurdles yesterday, putting the deal to create the nation's second-largest independent power producer on track to close by early next year. The Department of Justice granted early termination of the 30-day waiting period for the merger under the Hart-Scott-Rodino Antitrust Improvements Act, and the New York Public Service Commission ruled that the proposed merger will have no adverse impact on ratepayers.

In the Region Orion stockholders approve merger with Reliant Stockholders of Orion Power Holdings Inc. yesterday overwhelmingly approved a merger with Reliant Resources Inc., a Houston energy company that sells wholesale and retail energy in the United States and Europe. Orion, which went public in November 2000, said Sept. 27 that it will merge early next year with Reliant Resources to create the nation's second-largest independent power producer. Reliant will pay $26.80 a share for the Baltimore company, making the deal worth $2.9 billion, and will assume $1.8 billion in debt.

A month after announcing a planned merger with Texas-based Reliant Resources Inc., Orion Power Holdings Inc. posted record earnings in the third quarter yesterday, mostly with the help of its power plants that began operations this year. The Baltimore-based electric power generating company reported net income of $64.9 million for the quarter that ended Sept. 30, far exceeding the $3.9 million it posted in the third quarter of 2000. Earnings per diluted share rose to 58 cents, compared with 5 cents in the comparable period last year.

Executives of Baltimore-based Orion Power Holdings Inc. and Reliant Resources Inc. confirmed yesterday that they will merge in a deal that will create the nation's second-largest independent power producer with more than 20,000 megawatts of electricity capacity in operation or under construction. The deal, reported yesterday by The Sun, also means that Baltimore will likely lose a headquarters of a company listed on the New York Stock Exchange. In addition, the future of Orion's downtown personnel is in question.

Orion Power Holdings Inc., a Baltimore company that buys and operates power plants nationwide, is near agreement to be acquired by Houston-based electricity company Reliant Resources Inc., sources close to the transaction said yesterday. The deal could be announced as early as this morning, they said. Reliant would pay $2.9 billion in cash and assume $1.8 billion of debt in the transaction. The acquisition values Orion at about $26.80 a share, which represents a 40 percent premium over Orion's $19.20-a-share close on the New York Stock Exchange yesterday.

Orion Power Holdings Inc. said yesterday that its net income nearly quadrupled in the second quarter, compared with the corresponding period last year. The Baltimore-based electric power-generating company reported net income of $21.3 million for the quarter that ended June 30, compared with $5.5 million in the second quarter last year. Earnings per diluted share were 21 cents, compared with 9 cents in the year-earlier period, beating analysts' expectations of 19 cents a share. Revenue rose to $305.

In the Region Baltimore-D.C. retail prices up 0.4% in last 2 months Retail prices in the Baltimore-Washington area rose 0.4 percent during the last two months, after a 0.7 percent increase from January to March, the U.S. Department of Labor reported yesterday. The Consumer Price Index for All Urban Consumers also was 3.2 percent higher in May than it was 12 months ago. Prices for transportation, food and beverages, recreation and other goods and services rose in the period. Prices for housing, apparel, medical care and education and communication were down.

Orion Power Holdings Inc. has more than doubled in size and far exceeded earnings expectations in the last year, Chief Executive Officer Jack Fusco said yesterday at the Baltimore energy company's first annual shareholders meeting since going public in November. With about 6,000 megawatts of electricity - enough to supply 6 million homes - already being produced, Orion's new five-year plan calls for additional power plants to be built and the purchase of other facilities in order to reach a goal of 20,000 megawatts by 2005, Fusco told a small group of about 30 company employees and members of the board at the Hyatt Regency Baltimore.

In the Region Moody's, S&P cut credit outlook for Black & Decker Black & Decker Corp.'s credit-rating outlook was cut to "stable" from "positive" by Moody's Investors Service after the biggest maker of power tools said profit this year will be less than forecast. Standard & Poor's also lowered its outlook to "stable" and reaffirmed its credit rating of "BBB." Moody's reaffirmed its long-term rating of "Baa2." Towson-based Black & Decker has said profit this year will be $3.10 to $3.25 a share, below previous analyst estimates and less than the $3.51 a share the company earned last year.

Taking advantage of its soaring stock price and growing electricity demand across the country, Orion Power Holdings Inc. plans to sell 13 million shares of common stock in a public offering. The move should net the Baltimore-based energy marketer the millions it needs to build new power plants, industry analysts said yesterday. This will be the company's second offering since going public Nov. 17, when it raised $443.5 million by selling 27,500,000 shares of common stock. Upon completion of the latest offering, the company will have 103,483,003 outstanding shares of stock.