FPL Group Agrees with Entergy to Terminate Merger Agreement

Apr 02, 2001, 01:00 ET from FPL Group, Inc.

    JUNO BEACH, Fla., April 2 /PRNewswire/ -- FPL Group, Inc. (NYSE:   FPL)
 today announced that it had reached a mutual agreement with Entergy
 Corporation to terminate the two companies' agreement to merge.
     FPL Group said a number of factors led management and the board of
 directors to conclude the merger would not achieve the synergies or create the
 shareholder value originally contemplated when the merger was announced in
 July.  A principal reason for FPL Group's decision centered on discrepancies
 in Entergy's financial forecasts and Entergy's repeated refusal to provide
 financial documents and other information requested by FPL pursuant to the
 merger agreement.
     FPL Group said other factors also contributed to its decision to mutually
 agree to terminate the merger, including:  restrictions that appeared likely
 to be imposed by regulatory authorities on the ability to grow and operate the
 business of the combined companies, disagreements on how to operate and manage
 the combined companies, and issues regarding the prospects and direction of
 various aspects of the combined companies' business.
     Both companies agreed not to seek a termination fee under the terms of the
 merger agreement as a result of this termination.  A fee will be payable if
 within 9 months of the termination one party agrees to a substantially
 comparable transaction with another party.  Each company will bear its own
 merger-related expenses.  The companies said that they would withdraw
 merger-related filings currently pending before federal, state, and local
 regulatory agencies.
 
     FPL Group, with annual revenues of more than $7 billion, is one of the
 nation's largest providers of electricity-related services with a generating
 capacity of more than 23,000 megawatts.  Its principal subsidiary, Florida
 Power & Light, serves 3.9 million customer accounts in Florida.  FPL Group
 employs 10,850 employees and operates in 14 states.  FPL Energy, LLC, FPL
 Group's independent power production subsidiary, is a leader in generating
 electricity from clean and renewable fuels.
     FPL Group will host a webcast scheduled at 9 a.m. EDT on Monday,
 April 2, 2001.  To access the webcast, please go to the Web site www.vcall.com
 
 

SOURCE FPL Group, Inc.
    JUNO BEACH, Fla., April 2 /PRNewswire/ -- FPL Group, Inc. (NYSE:   FPL)
 today announced that it had reached a mutual agreement with Entergy
 Corporation to terminate the two companies' agreement to merge.
     FPL Group said a number of factors led management and the board of
 directors to conclude the merger would not achieve the synergies or create the
 shareholder value originally contemplated when the merger was announced in
 July.  A principal reason for FPL Group's decision centered on discrepancies
 in Entergy's financial forecasts and Entergy's repeated refusal to provide
 financial documents and other information requested by FPL pursuant to the
 merger agreement.
     FPL Group said other factors also contributed to its decision to mutually
 agree to terminate the merger, including:  restrictions that appeared likely
 to be imposed by regulatory authorities on the ability to grow and operate the
 business of the combined companies, disagreements on how to operate and manage
 the combined companies, and issues regarding the prospects and direction of
 various aspects of the combined companies' business.
     Both companies agreed not to seek a termination fee under the terms of the
 merger agreement as a result of this termination.  A fee will be payable if
 within 9 months of the termination one party agrees to a substantially
 comparable transaction with another party.  Each company will bear its own
 merger-related expenses.  The companies said that they would withdraw
 merger-related filings currently pending before federal, state, and local
 regulatory agencies.
 
     FPL Group, with annual revenues of more than $7 billion, is one of the
 nation's largest providers of electricity-related services with a generating
 capacity of more than 23,000 megawatts.  Its principal subsidiary, Florida
 Power & Light, serves 3.9 million customer accounts in Florida.  FPL Group
 employs 10,850 employees and operates in 14 states.  FPL Energy, LLC, FPL
 Group's independent power production subsidiary, is a leader in generating
 electricity from clean and renewable fuels.
     FPL Group will host a webcast scheduled at 9 a.m. EDT on Monday,
 April 2, 2001.  To access the webcast, please go to the Web site www.vcall.com
 
 SOURCE  FPL Group, Inc.

RELATED LINKS

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