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Allegheny Energy formally cancels plans to buy LTI

September 15, 2005|by DANIEL J. SERNOVITZ

Greensburg, Pa.-based Allegheny Energy told the Securities and Exchange Commission on Wednesday it no longer plans to buy Leasing Technologies International Inc., four years after the company told LTI it decided not to, company spokesman Allen Staggers said.

Acting on behalf of subsidiary Allegheny Ventures Inc., Allegheny Energy in December 2000 signed an agreement to acquire the financial service company's shares for $26 million. In the second quarter of 2001, according to SEC filings, Allegheny notified LTI it was terminating the purchase.

Staggers said the company never directly told the SEC about its decision, even though it made mention of it in a quarterly report in 2001. Recently, he said, the commission inquired about the sale and, learning Allegheny had withdrawn it, asked the company to provide formal notice.

"Even though we concluded we were terminating it, we didn't formally announce it," Staggers said. "The SEC called and said, 'Hey, you still have this open.'"

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