The Louisiana Municipal Police Employees Retirement System wants a federal judge in Pittsburgh to stop FirstEnergy's proposed $8.5 billion takeover of Greensburg-based Allegheny Energy.

The retirement system owns unspecified Allegheny Energy stock, which it claims is being undervalued in the deal.

FirstEnergy, of Akron, Ohio, wants to combine the companies to serve 6.1 million customers from Ohio to New Jersey. The deal is expected to close within 13 months, subject to a long list of regulatory hurdles including public utility boards in each state, as well as the Federal Energy Regulatory Commission and the Securities and Exchange Commission. Both companies' boards have approved the deal.

The lawsuit wants a judge to stop the deal unless Allegheny Energy gets more value for shareholders. Some analysts have questioned whether Allegheny sold itself short by not seeking other bids.

Allegheny Energy declined comment. FirstEnergy spokeswoman Ellen Raines says the deal will provide "immediate and long-term benefits to shareholders."

Under the terms of the deal, Allegheny shareholders would receive 0.667 shares of FirstEnergy common stock for each share of Allegheny Energy. Allegheny Energy shares closed Thursday up 4 cents at $23.41. FirstEnergy shares were down 3 cents at $39.73.

FirstEnergy shareholders would end up with about 73 percent of the new company, while Allegheny Energy investors would hold about 27 percent, according to the announcement.

In addition, FirstEnergy would assume about $3.8 billion in debt owed by the Greensburg company.

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