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Sonat Regains 100% Control of Sonat Power

Sonat Regains 100% Control of Sonat Power

Sonat exercised an option recently to buy back 35% interest in Sonat Power Marketing from Atlanta Gas Light (AGL). The price was not released. Sonat did say it will be at fair market value determined by investment banks selected by Sonat and AGL. Sonat already owns the other 65% of Sonat Power Marketing.

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

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