DOVER, Del. (AP) — Pepco Holdings has reached a tentative settlement in a shareholder lawsuit challenging its acquisition by Exelon Corp.
The lawsuit alleged among other things that Pepco directors breached their fiduciary duties to shareholders in approving the merger. A Delaware chancery judge had scheduled a preliminary injunction hearing next week.
In a regulatory filing Friday, Washington-based Pepco said it had agreed to settle the lawsuit, subject to court approval, by disclosing additional information about its proposed acquisition by Chicago-based Exelon.
Exelon announced in April that it was buying Pepco Holdings Inc. for $6.83 billion to create a large electric and gas utility in the Mid-Atlantic region, serving approximately 10 million customers.
The deal called for Exelon to pay $27.25 per Pepco share, an 18 percent premium to the previous day’s closing price.
