Columbia Energy Group said yesterday it is extending the deadlineby seven days to May 10 on its merger proposal with ConsolidatedNatural Gas in response to a data request from CNG’s board. CNG askedfor additional information on a two-way collar mechanism in Columbia’sunsolicited $6.7 billion bid for the company (see Daily GPI, April 20).

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 as of the close of trading yesterdaywould value the transaction at about $63.27/share or $6.1 billion.That compares with Columbia’s proposal of $45.50 of cash and $24.50of shares of Columbia common stock for each CNG share, or about$70/share. Columbia would issue whatever number of shares of itscommon stock would be required to equal $24.50 within set ceilingand floor prices. Both Columbia and Dominion also would have toassume about $2 billion in CNG debt.

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