Shareholders of Columbia Energy Group Friday duplicated theperformance of NiSource Inc. shareholders a day earlier,overwhelmingly approving the merger of the two companies, and bringingit a step closer to reality. (See Daily GPI, June 2)

More than 66% of Columbia shares were voted in favor of themerger, representing a 98% approval of the shares voted. NiSourceshareholders gave a thumbs up with nearly 65% of the outstandingshares in approval, representing 80% of the shares voted.

The merger still must pass review by the Federal TradeCommission. It also has been challenged in court by several localgovernment groups in Ohio. Following regulatory approval andclosing of the transaction, Columbia shareholders will receiveapproximately $6 billion in cash and stock, with another $2.5billion in Columbia debt to be assumed by a new NiSource holdingcompany.

“We are very pleased with today’s outcome,” said Oliver G.Richard III, Columbia president. “The new company will be an energypowerhouse, the largest natural gas distributor east of the RockyMountains, serving some 4.1 million customers in nine states. Itwill have a dynamic platform for growth in an industry that’sundergoing dramatic changes,” he said. “Shareholders and employeesalso will have an opportunity to share in the future growth of thenew company.

“Columbia and NiSource managements are working together toachieve a seamless transition and integration of the companiesafter the transaction’s closing date,” Richard added. The mergeris expected to be completed by the end of 2000, with the exact datedependent upon receipt of regulatory approval.

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