Southern Union Co. has challenged Oneok Inc. to a joint meetingwith law enforcement agencies to review allegations of wrongdoingagainst both companies related to their competing bids to acquireSouthwest Gas Co. last year. Southern Union said Oneok has notresponded to its offer.

“Our response is that that request is inappropriate, and weintend to resolve our issues with Southern Union in a court oflaw,” said Oneok spokesman Don Sherry.

In July Austin, TX-based Southern Union sued Oneok, SouthwestGas and others in federal district court in Arizona for damagesexceeding $750 million, alleging fraud and violations of theRacketeering Influenced and Corrupt Organizations (RICO) Act.

Southern Union’s offer for a joint meeting was made to OneokMarch 24 following suggestions by Oneok that Southern Union and itsattorneys had engaged in wrongdoing of their own. Southern Unionsuggested that it and Oneok together request a joint meeting withappropriate law enforcement agencies to “thoroughly address thecircumstances regarding the attempted acquisition of SouthwestGas,” according to the written offer sent by Southern Unionattorney Eric D. Herschmann.

The offer said within such a meeting Southern Union was”prepared to waive any Fifth Amendment, attorney-client andwork-product privileges and would expect Oneok and itsrepresentatives to do the same.” Southern Union requested aresponse by March 27 but said as of Friday Oneok still had notresponded.

In January Oneok called off its merger with Southwest Gas (seeDaily GPI, Jan. 24). Southwest filedlawsuits against Oneok and Southern Union following what it called”Oneok’s unjustified attempt to cancel the merger agreement between itand Southwest Gas.”

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