Sonat exercised an option recently to buy back 35% interest inSonat Power Marketing from Atlanta Gas Light (AGL). The price wasnot released. Sonat did say it will be at fair market valuedetermined by investment banks selected by Sonat and AGL. Sonatalready owns the other 65% of Sonat Power Marketing.

Sonat’s was able to buy back the interest when AGL told Sonat itwas moving to sell its interest in Sonat Marketing Co., the gasmarketing affiliate of Sonat Power Marketing. AGL is attempting tosell its interest because the joint venture has been unprofitable(See Daily GPI, May 10). AGL had owned a 35% interest in the gasmarketing company since 1995. The purchase price for AGL’s interestin Sonat Marketing will be a similar fair market valuedetermination, subject to a minimum price specified in thepartnership agreement.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.