March 14 Utility company Ameren Corp
said it will sell its merchant generation business, Ameren
Energy Resources Co, to Dynegy Inc, and will focus on
its rate-regulated electric, natural gas and transmission
Benefits from the divestiture are estimated to be about $900
million for Ameren, the company said in a statement.
The sale removes $825 million in debt from Ameren's balance
sheet and will create an estimated $180 million in tax benefits.
"We expect that this transaction will reduce business risk
and improve the predictability of our future earnings and cash
flows, which is expected to strengthen Ameren's credit profile
and support Ameren's dividend," said Ameren CEO Thomas Voss.
Ameren shares were up nearly 5 percent before the bell. They
closed at $34 on the New York Stock Exchange on Wednesday.