After reviewing its strategic options, Montana Power Co. is selling its energy holdings and concentrating on telecommunications. The Butte, Montana, utility holding company will put its electric and natural gas transmission and distribution utilities; coal mining; oil and gas production, processing and marketing; and independent power production assets on the sale block soon. The company plans to rename itself Touch America, the name currently used by its telecommunications division. Separation provides the best balance and outcome for repositioning Montana Power's businesses, according to Robert P. Gannon, the company's chairman and president. "By divesting our energy businesses, we will sharpen our focus on our fast-growing telecommunications activities, while enabling our energy companies to grow, thrive and add value under new ownership," he maintained. "We believe this separation will provide all corporate entities with the best opportunity for future growth. This strategic decision to divest was selected as the best course of action after extensive discussion at the board level and among senior policy officers. Expert outside business and financial advisors helped us with the analysis." The company will look to all qualified buyers and make a public announcement when the board has determined the preferred course or courses of action. In evaluating potential purchasers, Montana Power will examine a broad range of factors, including but not limited to, valuation, financial strength, operating experience, reputation for fair dealing with customers and employees, and the ability to finalize any transactions. -Petroleum Finance Week
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