Laid

The best laid plans of energy titans can often go astray,particularly where mergers are concerned. ExxonMobil tossed a wrenchinto the BP Amoco-ARCO merger works by suing for a preliminaryinjunction against the merger partners and PhillipsPetroleum. Phillips has agreed to buy ARCO’s Alaskan holdings forabout $7 billion in a deal intended to win Federal Trade Commissionapproval of the merger (see Daily GPI, March17).

NiSource finally sweetened its offer for Columbia Energy Groupyesterday to $74/share ($6.1 billion) from $68/share and laid downan olive branch by inviting five of Columbia’s top managers,including CEO Oliver G. “Rick” Richard, to take seats on anexpanded NiSource board. Richard was offered a vice chairmanship.

In a move to improve organization and reduce overlap, AquilaEnergy laid off all 34 members of its industrial gas sales team.Their work will be picked up by Aquila’s commercial gas sales team,located in Columbus, OH.

The groundwork for an even more concentrated U.S. energyindustry was laid Monday as Wisconsin Energy Corp., a Milwaukee,WI-based electric and gas utility, announced plans to acquireneighboring gas distributor WICOR Inc. for about $1.51 billion incash, stock and debt, creating a major Midwest energy concern andthe 13th largest utility in the nation.

When the Natural Gas Choice and Competition Act was signed by Gov. Tom Ridge last week, the foundation was laid for Pennsylvania’s gas customers to have gas supplier choice for the upcoming winter (See related story this issue). The question now is will other northeastern states follow Pennsylvania’s lead.

When the Natural Gas Choice and Competition Act was signed byGov. Tom Ridge earlier this week, the foundation was laid forPennsylvania’s gas customers to have gas supplier choice for theupcoming winter. The question now is will other northeastern statesfollow Pennsylvania’s lead.

Occidental Petroleum’s oil and gas drilling subsidiary laid off80 employees in Bakersfield, CA, on Wednesday, and will eliminateanother 130 jobs as part of a restructuring triggered by low crudeoil prices and its poor stock price performance. The subsidiary’swork force at its Bakersfield headquarters will be pared down to135 by eliminating 210 jobs and transferring another 50 employees.The company’s stock price plummeted last month to a new 52-week lowof 17 3/4 from a high of 30 3/4. It’s stock closed up 9/16 onWednesday following the announcement, but fell 1/8 Thursday to 221/8.