Dominion to Buy Britain’s East Midlands

Dominion Resources Inc. of Richmond, Va., said it will acquire British utility East Midlands Electricity for $2.1 billion, extending a string of big acquisitions of British power companies by U.S. counterparts. East Midlands, one of Britain’s 12 regional utilities, said it accepted Dominion’s offer of $11 per share. Dominion is the parent company of Virginia Power. East Midlands shares closed at $10.20, up 18 cents, in London; Dominion shares rose 62.5 cents to $40.375 on the New York Stock Exchange. East Midlands is considered one of the best-managed British utilities, having slashed nearly 40% of its work force since it was privatized six years ago. The purchase would leave just three of the regional power companies in Britain independent. Since last year, three other U.S. utility companies have purchased British firms.