Sonat exercised an option recently to buy back 35% interest in
Sonat Power Marketing from Atlanta Gas Light (AGL). The price was
not released. Sonat did say it will be at fair market value
determined by investment banks selected by Sonat and AGL. Sonat
already owns the other 65% of Sonat Power Marketing.
Sonat's was able to buy back the interest when AGL told Sonat it
was moving to sell its interest in Sonat Marketing Co., the gas
marketing affiliate of Sonat Power Marketing. AGL is attempting to
sell its interest because the joint venture has been unprofitable
(See Daily GPI, May 10). AGL had owned a 35% interest in the gas
marketing company since 1995. The purchase price for AGL's interest
in Sonat Marketing will be a similar fair market value
determination, subject to a minimum price specified in the
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