In response to a data request from CNG’s board, Columbia EnergyGroup extended its deadline to May 10 for the CNG board to respondto its unsolicited merger proposal. CNG asked for additionalinformation on a two-way collar mechanism in Columbia’s $6.7billion bid for the company (see NGI, April 26).

Columbia announced on April 18 it is was renewing its offer forCNG after having been rebuffed in February. CNG already has filedall the necessary regulatory submissions for a merger with VirginiaPower parent company Dominion Resources, but Columbia claims itsoffer has a higher value than Dominion’s all-stock transaction.

Dominion offered 1.52 shares of its stock for each share ofCNG’s common stock, which would value the transaction at about$62/share or $6 billion. That compares with Columbia’s proposal of$45.50 of cash and $24.50 of shares of Columbia common stock foreach CNG share, or about $70/share. Columbia would issue whatevernumber of shares of its common stock would be required to equal$24.50 within set ceiling and floor prices. Both Columbia andDominion also would have to assume about $2 billion in CNG debt.

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