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Dominion, CNG Shareholders Approve Merger

Dominion, CNG Shareholders Approve Merger

Dominion Resources Inc. and Consolidated Natural Gas Co. shareholders approved the merger of the companies to create the largest fully integrated gas and electric company in the U.S.

Dominion shares voted favored the merger by 99%. CNG reported that 98% of shares voted favored the merger.

Dominion corporate offices are in Richmond, VA. CNG is headquartered in Pittsburgh, PA. The combined company will be known as Dominion Resources and will be based in Richmond but will maintain a significant presence in Pittsburgh.

CNG and Dominion recently announced a joint venture to construct four gas-fired electric generating units in West Virginia, Ohio and Pennsylvania. Other joint initiatives are being developed.

Under terms of the merger agreement, CNG shareholders will receive a combination of Dominion common shares and cash valued prior to the merger at $66.60 for each CNG share. CNG shareholders may request all cash, all Dominion shares or a combination of both, subject to certain limitations. CNG shareholders will receive specific instructions at a later date explaining how and when they will be able to exchange their shares.

The Dominion Resources-CNG combination will have about 4 million retail customers in five states. The merged company will own about 20,000 megawatts of generating capacity, more than 3 Tcf of gas reserves, and will operate the largest gas storage system in North America. Additionally, the merged company will be one of the largest independent oil and gas exploration and production companies on the continent.

The merger is also moving ahead on the regulatory front, with all necessary approvals expected this fall. The Pennsylvania Public Utility Commission last week approved the merger. The companies are working toward closing by the end of the year.

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