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Regulators Slam Blackstone Stock Sale as Unlawful
9 Jun
Summary
- Hearing examiners found PNM's stock sale to Blackstone unlawful.
- Commissioners recommended voiding the transaction and imposing fines.
- Companies may need to resubmit acquisition plans after corrective actions.
State regulatory hearing examiners have determined that Public Service Company of New Mexico's stock sale to the private equity firm Blackstone last year was unlawful. In a recommendation issued on Monday, they advised the New Mexico Public Regulation Commission to void the stock transaction. This sale is linked to Blackstone's proposed acquisition of the electric utility.
The recommendation follows an investigation and public hearing prompted by allegations from consumer advocates that the transaction violated state law. If the commission approves the recommendation, both PNM and Blackstone would be compelled to "unwind or otherwise render ineffective the unlawful transaction."
Furthermore, the hearing examiners proposed imposing $100,000 penalties on both companies for proceeding with the stock sale without prior approval. They also recommended that PNM and Blackstone withdraw their current acquisition application.
Should the companies still wish to proceed with the acquisition, they would need to submit a new application. This new filing must comprehensively address the ramifications of the unlawful stock transaction and detail any corrective measures taken.
