Southern Union Co. announced Monday that U.S. District Court Judge Roslyn O. Silver, in Phoenix has issued a Jan. 4, 2002 Order dismissing all of Southwest Gas’ and ONEOK’s claims against Southern Union, in the three-year battle over the merger that never happened.

Southern Union said it would continue to pursue fraud and tortious interference claims against Southwest, Oneok and the remaining defendants and would seek punitive damages from all defendants.

“Southern Union is very gratified by the Court’s decision to dismiss these baseless claims,” said Southern Union attorney Eric Herschmann of Kasowitz, Benson, Torres & Friedman. “With this ruling, Southern Union is recognized as the only one of the three major corporations in this lawsuit able to pursue its claims against the other two. Likewise, Southern Union is the only party authorized to seek punitive damages.”

Herschmann added, “Southwest tried to claim that it was a victim from its failed merger. The Court correctly found that Southwest cannot even maintain a claim against Southern Union. Now, it is time for a jury to decide how much money Southwest and Oneok owe Southern Union from the failed merger. Let the jury decide what is the real reason that Southwest rejected an additional $108,000,000 for its shareholders.”

The eternal triangle began after Austin, TX-based Southern Union stepped up in February, 1999, making a higher offer for Southwest Gas after Oneok appeared to have a done deal to acquire it. The Southwest Gas board, which had already approved the Oneok offer, turned down Southern Union, which took its protests to court. As the battle and delays spun out, Oneok dropped its offer for Southwest Gas. At that point the lawsuits amongst the parties rapidly multiplied, including a shareholder class action suit and racketeering charges. The judge has thrown out the racketeering charges and the class action suit with California stockholders has been settled.

But it appears the fat lady has yet to sing in this case. The Court let stand Oneok’s and Southwest’s fraud in the inducement claims against each other for the merger failure, Southern Union said, and it plans to continue to pursue its complaints in court.

©Copyright 2002 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.