Mergers and Acquisitions

Iowa Telecommunications Services, Inc. (NYSE: IWA) has reached an agreement to acquire New Ulm Telecom Inc.'s ownership interests in En-Tel Communications, LLC, SHAL, LLC, and SHAL Networks, Inc. for $1.7 million, subject to specified customary adjustments. New Ulm Telecom is based in New Ulm, Minnesota.

SHAL owns and leases a 2,500-mile fiber-optic network throughout Minnesota that provides access to low cost, high quality transport facilities. En-Tel Communications is a CLEC based in Willmar, Minnesota, providing local voice, DSL and digital video services to customers in central Minnesota. Upon closing, Iowa Telecom will own all of the outstanding equity in the SHAL entities and substantially all of En-Tel Communications.

This is the fourth acquisition Iowa Telecom has announced in Minnesota over the past 18-months, following Bishop Communications, Sherburne Tele Systems and WH Comm. The sale is expected to close this fall. [SM]

Davenport downgrades Exelon Corp. (NYSE: EXC) from Buy to Neutral

Davenport analyst says, "We are lowering our rating on Exelon to Neutral in the wake of the company’s announcement this morning that it was raising the exchange ratio in its unsolicited offer to acquire NRG Energy (NYSE: NRG) from 0.485 EXC shares to 0.545 EXC shares for each NRG share...Notwithstanding Exelon’s discussion of newly discovered synergies, that it indicated was the basis of its higher offer, we still believe the new transaction to be EPS dilutive to EXC, and not in the best interest of its shareholders... Our pro-forma numbers, which assume $200 million of annualized cost synergies, offset by $87 million in added annual finance costs, as well as $1.1 billion of new common equity, but does not reflect any reduction of margin from assets to be divested, show the new transaction as being EPS dilutive, with our 2010 estimate of $4.14 being reduced to $3.94 on a pro-forma basis, and our 2011 estimate of $4.55 lowered to $4.24 on a pro-forma basis."

To see more analyst ratings on EXC Click Here.

Exelon Corporation (Exelon) is a utility services holding company. It operates through its principal subsidiaries Exelon Generation Company, LLC (Generation), Commonwealth Edison Company (ComEd) and PECO Energy Company (PECO).

NRG Energy, Inc. (NYSE: NRG) has not received a revised proposal from Exelon Corporation (NYSE: EXC) but is aware, through Exelon's news release and SEC filings, that Exelon has made a revised offer to acquire all of the outstanding shares of NRG Energy at a fixed exchange ratio of 0.545 Exelon shares for each NRG common share. NRG stockholders are advised to take no action at this time pending the review by NRG's Board of Directors.

NRG's Board of Directors will carefully review Exelon's revised proposal with its advisors and determine the appropriate response promptly.

NRG Energy, Inc. (NRG) is a wholesale power generation company.[SM]

Hewitt Associates (NYSE: HEW) has acquired the remaining interest in BodeHewitt AG & Co KG, a German pensions and benefits consulting specialist, from Bayerische Hypo- und Vereinsbank AG (HVB). Together, BodeHewitt and Hewitt will have 230 associates working from offices in Munich, Stuttgart, and Wiesbaden. BodeHewitt is the leading benefits consulting firm in Germany, advising more DAX30 companies than any other firm. It also serves as the actuary to many mid-size and smaller companies, as well as a variety of other pension schemes in Germany.

International Assets Holding Corporation (Nasdaq: IAAC) and FCStone Group, Inc. (Nasdaq: FCSX) announced that they have signed a definitive agreement to merge in a share swap that creates a combined company with a market capitalization of approximately $260 million.

The transaction, structured as a merger of equals, will create a combined entity that will serve more than 10,000 customers from an employee base of 650 people and offices in eleven countries. Based on reported results for the last four fiscal quarters for International Assets and FCStone, the combined company has an annual revenue base of approximately $411 million and as of the most recent balance sheet dates, total combined assets valued at $2.3 billion and total combined shareholders equity of $253 million.

Under the merger agreement, FCStone common shareholders will receive .2950 shares of International Assets common stock for each share they own. International Assets' current stockholders will own approximately 52.5% of International Assets following the merger and FCStone's current stockholders will own the remaining approximately 47.5%. Directors and management of the combined company will own approximately 26% of the equity. The merger is expected to be tax free to stockholders of both companies. International Assets will continue to list its common stock on the NASDAQ Global Market and trade under the symbol IAAC.