Merger

Amid the merger frenzy that has gripped the energy industry thisweek, CMS Energy Chairman and CEO William McCormick said he doesn’tenvision his company – whose goal is to be the third largest energyconcern in the world – being swallowed up by a competitor. Instead,he sees CMS Energy continuing in its aggressive role as a buyer ofassets.

Texaco stock closed up a healthy 5 1/16 Friday amid rumors thecompany is a takeover target in the sights of Chevron. Texacoclosed at 67 ¬ on the New York Stock Exchange on volume more thantwice the average. The stock’s 52-week range is 44 9/16 to 65 7/8.Chevron shares closed down 2 15/16 at 94 7/8. The stock’s 52-weekrange is 73 to 104 15/16. A Texaco spokesman could not be reachedat press time, and Chevron declined to comment on the rumor.

Devon Energy Corp. and Canadian-based Northstar Energy Corp.completed their merger, which was announced June 29. Devon isissuing about 16.1 million common equivalent shares to theNorthstar shareholders. In addition, Devon is assuming US$312million in existing Northstar debt. Northstar shareholders arereceiving 0.235 exchangeable shares for each Northstar share. Witha total capitalization of $1.9 billion, the merged company DevonEnergy Corp. is one of the top 15 U.S.-based independent oil andgas producers. The company is balanced with 54% of its provedreserves in the United States and 46% in Canada and has totalproved reserves of about 300 million Boe.

Amber Energy’s board has accepted a revised merger offer fromAlberta Energy Co. (AEC) and said it will cease pursuing the saleof some of its midstream assets. AEC raised its offer for Amber by50 cents a share to $7.50, or 0.225 AEC shares for each Ambercommon share, and agreed to an aggregate limit of 4.5 millionshares, which is up from 3 million. Together, the two gas companieshold the largest gas reserve base of any publicly-owned oil and gascompany in Canada with 4 Tcf of reserves, and create one of thelargest gas producers north of the border with about 900 MMcf/d ofgas production, said AEC President and CEO Gwyn Morgan.

After three months operating as MarketSpan Corp., the companyformed by the merger of Brooklyn Union Gas parent KeySpan Energyand Long Island Lighting and Power, has decided to change its nameto KeySpan Energy. CEO Robert B. Catell said the decision was madebecause of KeySpan’s superior name recognition in its serviceterritory. The company will trade on the New York Stock Exchangeunder the symbol KSE.

After three months operating as MarketSpan Corp., the companyformed by the merger of Brooklyn Union Gas parent KeySpan Energyand Long Island Lighting and Power, has decided to change its nameto KeySpan Energy. CEO Robert B. Catell said the decision was madebecause of KeySpan’s superior name recognition in its serviceterritory. The company will trade on the New York Stock Exchangeunder the symbol KSE.

Excitement and anticipation, rather than anxiety, prevailed onthe Canadian end of the mammoth merger announced earlier this monthbetween British Petroleum (60%) and Amoco Corp. (40%), thanks tonatural gas.

Shareholders of Canada’s Tarragon Oil and Gas Ltd. yesterdayapproved the indirect acquisition of their company by Marathon Oilfor an estimated $1.1 billion. Still, the final fate of the mergerwas up to the Ontario Court (General Division), which was expectedto issue a favorable decision either late Tuesday or today.

Shareowners of Western Resources and Kansas City Power &Light approved the merger of the companies to form Westar Energy.Approval required a majority of Western Resources common shares andtwo-thirds of KCPL outstanding common shares. About 98% of thevoting Western shares approved the transaction, representing 77% ofall shares outstanding. Nearly 94% of KCPL shares represented andvoting approved the transaction, representing 74.4% of alloutstanding KCPL shares.