Columbia Gas extended the deadline 24 hours for a CNG decisionon its definitive merger offer yesterday. Columbia said if CNG doesnot respond by 5 p.m. today, the offer will be withdrawn.

CNG made no decision while the minutes counted down on the originaldeadline. Columbia said the extension was caused by a writtentransmission from CNG requesting more time. This marks the second timeColumbia has extended its deadline. Last week, the Virginia-basedenergy company extended the offer until 5 p.m. yesterday. Columbia’soriginal hostile bid was made in April (See Daily GPI, April 20). The proposal offeredCNG stockholders $70/share consisting of $45.50 in cash and $24.50 inColumbia shares, adding up to $6.7 billion. The actual number ofColumbia shares to be issued for each CNG share would be based onColumbia’s stock price during a period immediately prior to closingand would be subject to a collar provision.

Dominion Resources said a Columbia merger would require lengthyregulatory review. Dominion originally bought CNG in late February for$6.1 billion in stock, which represents a 25% premium on CNG’s stockprice (See Daily GPI, Feb. 23).

“Columbia Gas has admitted that its unsolicited bid will take atleast nine months longer to close than the definitive mergeragreement which CNG and Dominion Resources have had in place sinceFebruary,” said Thos. E. Capps, CEO of Dominion Resources. “Thisrenders Columbia’s latest statement hollow and meaningless.”

Neither CNG nor Columbia would comment on the situation.

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