CalEnergy to Buy Peter Kiewit’s Stake

CalEnergy Co. said it will pay $1.2 billion to buy back Peter Kiewit Sons Inc.’s stake, ending a 6-year-old partnership that helped CalEnergy become a worldwide operator of power plants. Kiewit, a closely held Omaha-based construction company with interests in computer services and mining, owns 30% of CalEnergy’s stock as well as stakes in CalEnergy power plant projects worldwide. It has been CalEnergy’s largest investor since 1991. It’s selling out of CalEnergy to concentrate on its business of setting up computer systems, not because of dissatisfaction with CalEnergy management, Kiewit said. Executives at both companies said CalEnergy’s failed $3.3-billion hostile bid for New York State Electric & Gas Corp. did not affect Kiewit’s decision to sell. CalEnergy’s stock has fallen 12% since July 14, the day before the bid was made. CalEnergy dropped the bid on Aug. 15, citing NYSE&G;’s opposition. The Kiewit announcement came after the stock market closed. Shares of Omaha-based CalEnergy fell 69 cents to close at $32.94 on the New York Stock Exchange.