In a move to satisfy the financial terms of its $1.7 billion western energy settlement, El Paso Corp. last Tuesday announced a public offering of approximately 8.8 million shares of common stock priced at $7.85 a share.

Under the terms of the settlement of charges that the Houston-based energy company drove up natural gas prices during the western energy crisis, El Paso is required to issue approximately 26.4 million common shares. The current offering was expected to close on or about Dec. 26.

The proceeds from the offering were expected to total $69 million and were to be deposited for the benefit of the settling parties as part of the agreement.

This latest offering, and the approximately 8.8 million shares that were issued in November, brings the total shares issued so far in connection with the western settlement to approximately 17.6 million, according to El Paso.

The settlement, which was reached by El Paso and California and other western parties last March and filed at FERC in June, resolved charges in the high-profile complaint brought by the California Public Utilities Commission in 2000, accusing El Paso Natural Gas pipeline of withholding its capacity to inflate prices for gas delivered to the California border in 2000 and 2001.

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