The Chancery Court of Delaware is stepping up the pace on alawsuit filed on June 24 against Columbia Energy Group by NiSource,NiSource said yesterday. The court has called for an acceleratedschedule for the case in which NiSource is seeking to compelColumbia to reopen its 1999 annual meeting so that another directorcan be elected to a vacant seat on Columbia’s board.

Only four directors were elected at Columbia’s annual meetinglast month even though five directors were required to be electedto maintain a minimum number dictated by Columbia’s certificate ofincorporation and by-laws, according to NiSource. NiSource intendsto nominate a director to fill the vacant seat as part of itseffort to buy Columbia for $68/share, or about $5.7 billion.NiSource said it also intends to nominate a slate of directors toColumbia’s board at Columbia’s next annual meeting.

NiSource took its unsolicited offer to Columbia shareholderslast Friday and plans to keep it on the table until Aug. 6.Meanwhile, Columbia has urged its shareholders to take no actionuntil its board has reviewed the transaction.

Columbia’s board rejected the same offer earlier this month, andColumbia CEO Oliver G. (Rick) Richard III said the company is “notfor sale and is not interested in any merger transaction in whichanother company acquires control of Columbia.” Columbia isconsidering a significant share repurchase program potentiallyincluding 10% of its outstanding shares as an interim way toenhance shareholder value and turn around Columbia’s recent poorstock performance, a report by PaineWebber stated.

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