NiSource dropped its hostile $74/share tender offer ($6.1billion) for all of the outstanding common stock of Columbia EnergyGroup (CG) yesterday and said it will return the 47,576,897 CGshares, representing 58.6% of the Columbia shares outstanding, toshareholders. This does not mean it’s giving up, however. On thecontrary, NiSource said it intends to continue the negotiation andbidding process set up by Columbia’s board.
Common
Articles from Common
El Paso Completes Crystal Storage Deal
El Paso Energy Corp. completed its acquisition of Crystal GasStorage Inc. of Shreveport, LA. Each holder of Crystal Gas Storagecommon stock received $57 per share in cash in a deal worth $224.6million. “The Crystal assets provide the flexibility, highdeliverability, and multiple pipeline interconnects necessary tomeet the gas supply demands of new plants in the competitive powermarket,” said El Paso CEO William A. Wise.
El Paso Completes Crystal Storage Deal
El Paso Energy Corp. completed its acquisition of Crystal GasStorage Inc. of Shreveport, LA. Each holder of Crystal Gas Storagecommon stock received $57 per share in cash. The deal is worth$224.6 million.
Calpine Acquires Majority of Cogeneration Corp.
Independent power company Calpine Corp. of San Jose, CA,completed its acquisition of 80% of Cogeneration Corp. of America’s(CGCA) common stock for about $146 million. The deal growsCalpine’s gas-fired power production by 20% to 2,476 net megawattsof capacity.
Calpine Acquires Majority of Cogeneration Corp.
Independent power company Calpine Corp. of San Jose, CA,completed its acquisition of 80% Cogeneration Corp. of America’s(CGCA) common stock for about $146 million. The deal growsCalpine’s gas-fired power production by 20% to 2,476 net megawattsof capacity.
Industry Briefs
NiSource Inc. has extended its $74/share ($6.1 billion) tenderoffer for all of the outstanding common stock of Columbia Energyuntil midnight EST on Feb. 11. despite seeing little change in thenumber of shares tendered or the reaction of Columbia since itraised its offer in October. It said that so far Columbiashareholders have tendered 49,645,081 shares, or about 61% of allColumbia’s outstanding stock. Columbia’s management has repeatedlyrejected a merger with NiSource, and currently is evaluating alloptions, including a sale of all or part of the company.
Industry Briefs
A management group composed of all the corporate officers ofVirginia Gas Co. has presented a proposal to the company’s board toacquire all outstanding shares of the company’s common stock. Underthe proposal, each shareholder would be offered $4 in cash for eachshare. The cash purchase price represents a 33% premium to theclosing price of the company’s shares on Dec. 6. Michael L.Edwards, the company’s president and CEO, leads the managementgroup. The ultimate success of the proposal is contingent on thenecessary approvals of the shareholders, the board and regulators,as well as obtaining the necessary financing. Virginia Gas, basedin Abingdon, VA, is involved in all aspects of the gas businessfrom E&P to pipelines, storage and distribution.
People
Pennsylvania Governor Tom Ridge nominated Republican utilitylawyer Terrance J. Fitzpatrick to replace David W. Rolka on thePennsylvania Public Utility Commission. “He is a common-senseenvironmentalist with a rich breadth of experience in energy andutility law and policy,” Ridge said in a statement. As a lawyer,Fitzpatrick has represented GPU Energy, owner of the Three MileIsland nuclear plant
Questar Announces $50 Million Stock Repurchase Program
Questar Corp. announced plans to purchase up to $50 million ofits outstanding common stock on the open market or in privatelynegotiated transactions over the next two years.
Overall Gains Are Largest in Western Markets
Increases of about a dime or more were common in the cash marketMonday. The upticks tended to be larger in the West, approaching 20cents in the California market and on some Rockies pipes. There wassome fundamental validation of Western firmness as the region wasunseasonably cool, especially in the Pacific Northwest, wheretemperatures were colder than in Alberta, a Calgary source said.