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Reliant buys generator

Thursday, Sept. 27, 2001 | 10:42 a.m.

line THE ASSOCIATED PRESS

HOUSTON -- Energy supplier Reliant Resources Inc. is buying Orion Power Holdings Inc., an East Coast electric power generating company, for $2.9 billion in cash.

Officials said the deal announced today would enable Reliant, which is controlled by Houston-based Reliant Energy Inc., to grow more quickly and get a foothold in the New York market.

Reliant is also assuming $1.8 billion in debt as part of the deal for Baltimore-based Orion Power.

In the deal, Reliant Resources will acquire all of Orion Power's outstanding shares for $26.80 per share in cash.That is a 40 percent premium over Orion's closing price Wednesday of $19.20.

Shares of Orion have been beaten down from the 52-week high of $34 on April 27.

The merger is conditioned upon approval by Orion Power's shareholders and regulatory agencies.

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