Columbia Energy has accepted defeat in the three-month battlewith Dominion Resources for a merger with Consolidated Natural Gas.Columbia officially withdrew its $6.7 billion offer late Tuesdayfollowing a sweetened merger bid by Virginia Power parent Dominionset at $6.4 billion and the CNG board’s unanimous approval of arevised agreement with Dominion.
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Futures Tumble Lower into Weekend
Access trading kept traders on their toes late last week. Aftera more than 7-cent rally in last Wednesday’s computer-only tradingsession, the June contract doubled back Thursday evening, slippingmore than 5 cents lower before Friday’s open. And the selling wouldnot stop there as bears continued their push toward lower pricesthroughout the trading session Friday. June finished down 8.6 centsfor the day at $2.253.
Southwest Gas Merger Proves No Easy Task
After a week of offers, acceptances and counter-offers, Southern Union and Oneok are now waiting to see who is awarded the prize of merging with Southwest Gas. Both companies said they have reached the maximum they can offer. The only winners so far, according to a source close to the situation, have been Southwest Gas’ shareholders, who have seen the price for their shares vault from an original $28.50/share to $33.50/share.
Futures Higher as Traders Position for Expiration Day
After posting 7.3 cent rally to kick off the week Monday, thefutures market found itself in a spirited see-saw battle pittingprice-optimistic bulls versus price skeptical bears Tuesday. In theend however, the market sided with the trend as the bulls came awaywith their fifth gain in as many days by nudging the May contract3.2 cents higher to $2.331. The May contract expires today at 3:10EST.
Baker Hughes Trimming Down, Planning Recovery
After a $297 million net loss in 1998, it should come as nosurprise that Baker Hughes is cutting capital spending this yearand will not be out shopping for assets or new combinations likemany other industry companies. Drilling activity continues to plumbnew depths (figuratively, not literally), reaching a record lowlast week with 498 rotary rigs operating in the U.S.
UtiliCorp Taking AQP Offer to Shareholders
After negotiations with a special committee of Aquila Gas Pipeline (AQP) directors on an acquisition offer failed last week, UtiliCorp United Inc. launched an $8.00 per share cash tender offer directly to shareholders on Friday for all outstanding shares of the midstream operation. Kansas City, MO-based UtiliCorp already owns about 82% of AQP; the public owns about 18%, or 5.4 million shares.
Futures Seek Fair Value on Either Side of $2.00
After opening at the pivotal $2.00 level yesterday the Maycontract was held to a tight, 3.5-cent trading range, as tradersseemed willing to sell the prompt contract on moves above $2.00 andbuy the market on moves below $2.00. And similar to the priceaction, yesterday’s close had something for everyone. Bulls foundsolace in the market’s ability to finish above $2.00, while bearswere optimistic following the market’s second-straight day oflosses. May slipped 1.7 cents to $2.013.
Futures Lower in Late-Day Sell-Off
Following three straight days of gains, bull traders had theirwinning streak cut late Monday after trading in positive territoryfor much of the session. And although many sources were expecting apullback following the near 20-cent price spike last week, somefelt the prompt contract’s inability to make a new high was anegative feature. The May contract finished down 0.8 cents at$2.03.
MCN Buys Howard Energy’s Retail Marketing Assets
Less than a week after buying the gas marketing operations ofSemco Energy, MCN Energy subsidiary CoEnergy Trading announced thepurchase of Michigan-based Howard Energy Marketing’s retail gasmarketing assets for an undisclosed amount. The purchases aredesigned to bolster MCN’s unregulated marketing operations and itsinterest in the proposed Vector and Millennium Pipeline projects,which will add 1 Bcf/d of new gas transportation capacity throughthe region starting in November 2000, the company said.
MCN Buys Howard Energy’s Retail Marketing Assets
Less than a week after buying the gas marketing operations ofSemco Energy, MCN Energy subsidiary CoEnergy Trading announced itis buying Michigan-based Howard Energy Marketing’s retail gasmarketing assets for an undisclosed amount. The purchases aredesigned to bolster MCN’s unregulated marketing operations and itsinterest in the proposed Vector and Millennium Pipeline projects,which will add 1 Bcf/d of new gas transportation capacity throughthe region starting in November 2000, the company said.