of Sections 6 (a) and 7 should be granted with respect to such issue and sale.* Under the circumstances of this case, we have determined to grant an exemption from the competitive bidding requirements of subsections (b) and (c) of Rule U-50 with respect to the issuance and sale of common stock of Storage Company to Panhandle. The acquisition by Consumers of Storage Company common stock both from its nominees and from Storage Company is subject to Sections 9 (a), 10 and 12 (f) of the Act and Rule U-43 thereunder. We find that such proposed acquisition meets the standards of such sections and rule. The application-declaration herein will be granted and permitted to become effective, subject however, to the terms and conditions in Rule U-24. An appropriate order will issue. By the Commission (Chairman Caffrey and Commissioners McConnaughey and McEntire), Commissioner Hanrahan being absent and not participating. As indicated heretofore, the issuance and sale of Storage Company common stock have been authorized by the Michigan Public Service Commission, the state commission of the state in which Storage Company was organized. 25 S. E. C. APPENDIX I CONSUMERS POWER CO. AND MICHIGAN GAS STORAGE CO. Balance sheets as at Nov. 30, 1946, reflecting the proposed initial transactions on a corporate and consolidated basis Column 1. Consumers Power Co.-actual-12 months ended Nov. 30, 1946. Column 2. Effect on statement of income of Consumers Power Co. for the 12 months ended Nov. 30, 1946, based on estimated operations of Michigan Gas Storage Co. for the first year starting Jan. 1, 1947. Column 3. Consumers Power Co.-pro forma reflecting the effect of transactions shown n column 2. Column 4. Michigan Gas Storage Co.-estimated for the first year of operations starting Jan. 1, 1947. Column 5. Intercompany eliminations and provisions for minority stockholders' interest in Michigan Gas Storage Co. Column 6. Consumers Power Co. and Michigan Gas Storage Co.-pro forma consolidated. Total income deductions. Net income. Dividends on preferred stock. Net income after preferred stock dividends. |