The Rising Influence of Rising Affluence

[Timothy Smith]

$EXC $POM - The D.C. water and sewer authority is the latest city agency to come out against a revised settlement that would allow Exelon (NYSE:EXC) and Pepco (NYSE:POM) to merge.

DC Water general manager George Hawkins, one of several city officials that must sign off on a settlement agreement that was revised last week by city regulators, said today that he opposes the deal.

Mayor Bowser and the city's attorney general said yesterday that they would not support the deal, leaving the merger in doubt.

POM shares could lose another $4-$5/share if the merger does not close, says Guggenheim Securities analyst Shahriar Pourreza: “Given that [POM] has been out of a rate case since 2014 and the delays with this merger, [it] has materially deteriorated as a stand-alone company.”

POM lost another 2% in today's trade, and has shed 11.5% since Tuesday.