Exhibit 99.8
[Logo of FPL Group] [Logo of Entergy]
Date: December 15, 2000
For Release: Immediate
Contacts for FPL Group: Contacts for Entergy:
Contact person (Media) Morgan Stewart (Media)
305-552-3888 504-576-4238
[email protected]
Lisa Kuzel (Investor Relations) Nancy Morovich (Investor Relations)
561-694-4697 504-576-5506
[email protected] [email protected]
FPL GROUP, ENTERGY SHAREHOLDERS APPROVE
CREATION OF NATION'S LEADING POWER COMPANY
JUNO BEACH, Fla. and NEW ORLEANS, La. - Shareholders of FPL
Group, Inc. (NYSE: FPL) and Entergy Corporation (NYSE: ETR) today
gave their approval to a proposed merger of equals that would
result in one of the largest, strongest, and cleanest power
companies in the nation.
At special shareholder meetings held in New York and New
Orleans, 96.9 percent of FPL Group shareholders and 98.8 percent
of Entergy shareholders who cast ballots voted in favor of
merging the organizations into one company that will be the
nation's largest electric utility and power producer. The
numbers represent 79.5 percent of FPL shares outstanding and 78.3
percent of Entergy shares outstanding.
"Today's shareholder votes represent a very important
milestone on the road to completion of this merger by the end of
2001. Our shareholders have recognized the benefits the merger
will provide in bringing together the scope, scale and resources
necessary for achieving competitive investor returns and growth
in the rapidly changing energy marketplace," said James L.
Broadhead, FPL Group chairman and chief executive officer.
Broadhead will serve as chairman of the merged company.
The merger combines two high performance cultures to create
a company that will be the:
- #1 electric utility in the nation in size, serving more than
6.3 million customers
- #1 power producer with generating capacity of more than
48,000 megawatts
- #2 nuclear power generator with more than 10,000 megawatts.
Broadhead said he expects the new company will have a strong
balance sheet and increased cash flows due to anticipated
synergies that will enable it to pursue more aggressively
profitable growth opportunities.
"This merger combines two strategically aligned, financially
healthy companies into an organization that has no equal in the
industry," said Entergy Chairman Robert v.d. Luft.
Wayne Leonard, Entergy chief executive officer, added, "Both
companies have divested non-core businesses and are focusing on
enhancing utility operations. At the same time, both are growing
their wholesale generation businesses with an emphasis on clean
energy from nuclear, natural gas and renewable energy sources.
Combining our assets and skills will not only enhance our ability
to achieve these strategic goals, but will also create the
opportunity to move to a new level as a leading energy company."
Leonard will serve as president and chief executive officer of
the merged company.
In other merger-related actions, FPL Group and Entergy in a
Nov. 30 filing asked the Federal Energy Regulatory Commission to
approve the merger no later than June 1, 2001. Entergy has also
filed for approval with various city and state regulators in
Arkansas, Louisiana, Mississippi, and Texas.
In the filings, the companies highlighted synergy
opportunities from the merger. The regulated businesses should
realize cost savings of $110 million to $150 million derived from
eliminating duplicate corporate and administrative positions and
programs, as well as procurement economies. By sharing best
practices between the various subsidiary companies, FPL Group and
Entergy expect to maintain or enhance system reliability and
customer service. The competitive businesses expect annual cost
savings and revenue enhancements of $40 million to $125 million
and capital savings ranging from $50 million to $100 million. The
combined company expects the merger will provide annual synergies
growing from $200 million to $375 million over the first few
years after closing.
FPL Group and Entergy also will seek approval from the
Nuclear Regulatory Commission, Securities and Exchange
Commission, and others prior to the targeted completion of the
merger before the end of 2001.
In a tax-free, stock-for-stock exchange, each holder of FPL
Group common stock will receive 1.00 share of the new holding
company for each share of FPL Group common stock, and each holder
of Entergy common stock will receive 0.585 of a share of the new
holding company for each share of Entergy common stock. The
transaction will be immediately accretive to both companies,
based on consensus security analysts' earnings estimates.
Average annual earnings per share growth for the combined company
is expected to be 10 percent or more.
Based on the number of common shares currently outstanding,
FPL Group shareholders will own 57 percent of the common equity
of the combined company and Entergy shareholders will own 43
percent. The new company's board of directors, which will
include Broadhead and Leonard, will initially consist of 15
members, eight from FPL Group and seven from Entergy. The merged
company will locate its corporate headquarters in Juno Beach,
Fla., and will have its utility group headquarters in New
Orleans, La. Each of the company's six utilities will continue
to maintain its headquarters at its present location.
Company Information
Entergy Corporation, with annual revenues of nearly $9
billion, is a major global energy company engaged in power
production, distribution operations, and related diversified
services, with more than 12,200 employees. It is also a leading
provider of wholesale energy marketing and trading services.
Entergy owns, manages, or invests in power plants generating more
than 30,000 megawatts of electricity domestically and
internationally and delivers electricity to about 2.5 million
customers in portions of Arkansas, Louisiana, Mississippi, and
Texas. Information is available on the Internet at
www.entergy.com.
FPL Group, with annual revenues of more than $6 billion, is
one of the nation's largest providers of electricity-related
services with a generating capacity of more than 20,000
megawatts. Its principal subsidiary, Florida Power & Light,
serves 3.8 million customer accounts in Florida. FPL Group
employs 11,350 employees and operates in 17 states. FPL Energy,
LLC, FPL Group's independent power production subsidiary, is a
leader in generating electricity from clean and renewable fuels.
Information is available on the Internet at www.fplgroup.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains forward looking statements within the
meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements with respect to
revenues, earnings, performance, strategies, prospects and other
aspects of the businesses of FPL Group, Inc. and Entergy
Corporation are based on current expectations that are subject to
risk and uncertainties. A number of factors could cause actual
results or outcomes to differ materially from those indicated by
such forward looking statements. These factors include, but are
not limited to, risks and uncertainties relating to: changes in
laws or regulations, changing governmental policies and
regulatory actions with respect to allowed rates of return
including but not limited to return on equity and equity ratio
limits, industry and rate structure, operation of nuclear power
facilities, acquisition, disposal, depreciation and amortization
of assets and facilities, operation and construction of plant
facilities, recovery of fuel and purchased power costs,
decommissioning costs, present or prospective wholesale and
retail competition (included but not limited to retail wheeling
and transmission costs), political and economic risks, changes in
and compliance with environmental and safety laws and policies,
weather conditions (including natural disasters such as
hurricanes), population growth rates and demographic patterns,
competition for retail and wholesale customers, availability,
pricing and transportation of fuel and other energy commodities,
market demand for energy from plants or facilities, changes in
tax rates or policies or in rates of inflation or in accounting
standards, unanticipated delays or changes in costs for capital
projects, unanticipated changes in operating expenses and capital
expenditures, capital market conditions, competition for new
energy development opportunities and legal and administrative
proceedings (whether civil, such as environmental, or criminal)
and settlements and other factors. Readers are referred to FPL
Group, Inc.'s and Entergy Corporation's most recent reports filed
with the Securities and Exchange Commission.
# # #
