Fortis to buy U.S. electric transmission company ITC for US$11.3B

ST. JOHN'S, N.L. - Fortis Inc. has a friendly deal to buy U.S. electric transmission company ITC for US$11.3 billion.

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ITC's headquarters will remain in Novi, Mich., and all its employees will be retained to operate ITC as a stand-alone company within the Fortis group.

The deal involves a combination of cash and shares in Fortis, which is based in St. John's, N.L.

About 27 per cent of Fortis total shares (TSX:FTS) will be owned by ITC shareholders if the deal is completed as proposed.

Fortis will add ITC's high-voltage transmission lines in seven states to holdings in several Canadian provinces, the United States and elsewhere.

Fortis is offering US$22.57 in cash - about US$6.9 billion in total - and about three-quarters of a Fortis share for each ITC share. Fortis will also assume about US$4.4 billion of debt owed by ITC.



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