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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