PacifiCorp, parent company of Utah Power & Light Co., said one of its subsidiaries has signed an agreement under which it could purchase Hawaiian Airlines for $110 million. The move is part of an ongoing PacifiCorp program to expand the conglomerate.
PacifiCorp Finance Inc. has entered into a letter of intent and a stock option agreement with HAL Inc., which owns the airline.Under the agreement, PacifiCorp Finance will have until March 12 to investigate HAL and decide if it wants to make an offer to buy the company for $45 a share, which amounts to a total price of $109.9 million.
"We have a 45-day period to really get into the airline and do the thorough study that you can't do without one of these (agreements)," said Steve Rafoth, a PacifiCorp spokesman. "This is a Pacific Rim firm, and the Pacific Rim is a significant focus for the PacifiCorp family."
If PacifiCorp Finance tries to buy the airline, the deal would have to be approved by the U.S. Justice Department, the company said. Rafoth said HAL has agreed to accept the offer if it is made.